Offer more rewarding benefits to your employees

With an HRA, you remain in control of what expenses are covered while providing an advantageous health care supplemental benefit for your employees. Lifetime Benefit Solutions can help create the perfect balance between the rising costs of health care and an attractive benefit package for your employees and potential candidates.


What is an HRA?

An HRA is an employer-funded, tax-sheltered account used to reimburse employees for allowable medical expenses as defined by the Internal Revenue Service (IRS). Coupled with your existing medical plan, this employer-funded, tax-sheltered account allows members to pay for certain out-of-pocket health care expenses while you remain in control of how the dollars are spent.

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HRAs benefit everyone

Member benefits

  • HRA funds are funded by employers and not taxable to the member
  • Flexibility to maximize savings by combining them with Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)
  • Depending on plan design, HRA plans may cover retired employees along with their spouses and tax dependents

Employer benefits

  • Have full discretion over HRA plan design and management of how funds can be carried over from year-to-year (within IRS guidelines)
  • Allows the customization of coverage for employees based on the particular demographics of the population
  • All employer contributions to the plan are 100% tax deductible for the employer

Types of HRA plans that may be right for you

LBS has the expertise in managing even the most complex HRA plans. In fact, we have the ability to effectively administer 99% of all existing HRA plan designs. Our flexibility in plan design will help you create the one that is the right fit for both you and your employees. Popular plan design options include:

Deductible Only

Designed to be coupled with a higher-deductible health plan. The employer elects a higher deductible health plan and then, through the HRA, allows members to access dollars saved from the reduced premium expense, to offset the increase in the health plan deductible.

Limited Purpose

This plan is offered to members who make HSA contributions and can be used in combination with the HRA. It is designed to reimburse only dental and vision expenses.

Individual Coverage

Individual Coverage HRAs (ICHRAs) are a type of employer funded HRA provided to employees as a means to purchase individual health insurance rather than offering a group health plan.

Customized Reimbursement

The employer has full creative freedom with this plan – you can fully customize the health plan expenses you wish to be reimbursed, such as prescription only, copayments only and post-deductible.

Retiree

This plan design offers an attractive benefit to those who retire from your organization. It reimburses qualified medical expenses incurred only during retirement.

All Eligible Expenses

If you’re looking for the plan design that provides a wide range of potential expenses, this is it. This plan reimburses members for all expenses determined as eligible in Section 213(d) of the Internal Revenue Code.


Saving made simple

Reduce administrative burden by providing your employees with a way to manage their spending accounts without requiring your time. The LBS Health Spending Mobile App provides easy, secure access so your employees can conveniently monitor balances and track expenses on the go.

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Note: LBS is not a law firm. This material is for informational purposes only and does not constitute legal or tax advice. State laws may vary with respect to HRA benefits. Please consult with your own legal counsel or tax advisor for the legal and/or tax requirements that may apply to you or your employees.

 

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