Health Reimbursement Arrangements
Health Reimbursement Arrangements (HRAs) are a popular method of helping employers control health insurance costs while providing choice to employees. Typically,
an HRA is used in conjunction with a less expensive higher deductible or co-pay health plan. With an HRA, employers can set aside money for each employee to pay for health care expenses.
Features of an HRA:
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HRA funds used by employees are tax deductible to the employer
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HRA funds are tax- free to the employee
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Gives employees choices
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Creates awareness of the cost of health care
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Implementation of an HRA with a higher deductible health plan will reduce costs
Advantages of a HRA:
Flexibility: Employers design the HRA that works best for their employees while meeting their cost savings goals There is no pre-funding requirement – an HRA is a pay-as- you-go plan Unused funds can roll over at the employer’s discretion Utilization rates can be controlled through a custom plan design Provides the employer with a long term health care plan strategy New employer trainings Employee trainings
Employers receive their own Client Service Representatives to help them with their plan Employees can contact Member Service Representatives with questions Employees can create their own online account to view balance and account information Employers receive electronic access to Plan Documents, Invoices and other administrative plan information Employers can choose for the HRA to reimburse any of the following eligible expenses:
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Code 213(d) medical expenses
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Medical deductible expenses
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Co-pays
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Co-insurance Prescription expenses
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All IRS expenses
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Over-the- counter expenses (OTC medicines require a prescription)
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Dental expenses
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Orthodontia expenses
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Vision expenses
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Any combination of the above
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For more information please contact us for details or fill out the form below to request further details.
HSA
A Health Savings Account (HSA) can be a valuable tool in designing a comprehensive healthcare program for your employees. HSAs can be designed to provide feature-rich features for our clients. We can provide you tremendous support to help you create a customized cost-savings solution for you and your employees. Tax Implications for HSAs Contact us for information on tax implications for HSAs including pre tax implications for HSAs.
Eligible Expenses Items subject to the deductible
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Co-pay or coinsurance of the health care plan
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Dental
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Vision
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Orthodontia
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Limited over-the- counter items
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Alternative treatments
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Contact us for a comprehensive list of FSA/HSA eligible expenses.
POP
A Premium Only Plan (POP) involves one simple payroll change that saves taxes for you and your employees, but it must be referenced in your plan documents in order to be compliant. POP language can be included in your FSA/DCA cafeteria plan documents as part of our regular service, upon request. For groups that do not have an FSA/DCA cafeteria plan, Powers and Associates is pleased to offer Premium Only Plan (POP) plans and administration. We make sure employers receive a signature-ready, customized Premium Only Plan Kit and provide access to a dedicated POP Compliance support team. For more information please contact us for details or fill out the form below to request further details.
Features of a Premium Only Plan (POP):
Salary reduction plan that allows employees to pay for eligible group insurance premiums on a pre-tax basis
Simple payroll change that results in tax savings for both employers and employees
Employer saves about 8% (FICA payroll tax match) on every dollar the employee contributes pre-tax
Employees see an average of $25 to $40 in tax savings for each $100 they deduct through payroll The EZPOP program includes Annual
The EZPOP program includes Annual Compliance Services:
Re-enrollment materials and signature-ready Plan documents, forms, and procedures The latest documentation required for keeping the Plan in compliance with IRS Regulation changes Free assistance with POP non-discrimination testing (upon request).
Quarterly newsletter with compliance tips and reminders Continued access to our Premium Only Plan Compliance Support Unit
COBRA
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a Federal law that was enacted in April 1986. The law requires that employer groups of 20 or more provide for temporary health, dental and/or vision coverage for employees and/or their eligible
dependents after a qualifying event has occurred. A qualifying event includes termination of employment, reduction in work hours, divorce or legal separation, employee’s death, an employee’s entitlement to Medicare benefits, or a dependent’s loss of coverage due to
ineligibility. Keeping up with COBRA rules and regulations can be a full-time job. The administrative tasks required to prepare, track, and mail notices, process elections, and collect payments, and administer COBRA can quickly drain important business resources. Choose us to be
your partner so we can do the heavy lifting. Our COBRA solution frees business owners up to concentrate on other critical tasks.
We simplify COBRA administration with comprehensive services:
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Reliable and compliant notices, processes, and reporting
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24/7 access to real-time data
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Online election processing, electronic payments, and support requests
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Easy setup process and outstanding customer service throughout the plan year
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COBRA alternatives program limits adverse selection and saves money
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Strictly enforced, expert administration helps ensure compliance
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The industry’s most powerful web-based system is also flexible enough to accommodate special needs and requirements.
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We can provide you or those you represent with consultation on such programs for thosewho qualify.