An HRA provides the employer with unlimited flexibility, creating cost-savings opportunities for the employer while giving employees choices and control.
WBP (105) allows you to take full advantage of this flexibility by letting you set up an employer-funded Health Reimbursement Arrangement with one or more underlying Health Reimbursement Accounts (HRAs) to cover employee medical expenses.
The HRAs can be linked to a Health Coverage policy/plan (usually high deductible) where the employee must participate in the policy/plan to be eligible for the HRA. The HRAs can also be non-linked, that is designed to stand alone to reimburse employees for such expenses as dental, vision, or wellness.
A major consideration when administering an HRA is to have an administration system and plan documents that work together.
We also believe flexibility is crucial when administering HRAs. Employers are often adamant about how they want their employee benefits to be administered. For instance, with WBP, not only can you choose whether or not you want to carry-over unused funds, but you can set the amount or percentage to be carried forward. This is only indicative of the flexibility that WBP offers. You will find it in all areas of administration.