Health Reimbursement Arrangements (HRAs)

Only an employer can fund Health Reimbursement Arrangements (HRAs); employees cannot contribute to an HRA Plan. Usually the employer does not actually put dollars aside in an account for an employee, but simply keeps track of HRA contributions or credits for each employee. ACS provides this record-keeping service. The employer simply funds HRA eligible expenses as they are submitted to and approved by ACS.

• In contrast to HSAs, employers have more discretion in designing an HRA plan and the companion health plan.
• HRAs are usually set up with health plans that have high deductibles and significant annual out-of-pocket limits.
• Rollovers of HRA balances from year to year are allowed, but an employer can choose not to allow rollovers or limit the amount of the rollovers.
• Terminating employees usually forfeit their HRA credit balance. Even though retirees cannot cash out their HRA credit balance, some employers allow retirees to use it.

ACS offers several HRA and companion health plan options. We also help employers design custom plans to meet their unique needs. For more information on HRAs and a more in-depth comparison of all consumer directed health plan options, call ACS or send us an e-mail today.