HRA: Tax-Free Health Savings Compliments of Your Employer
A Discovery Benefits health reimbursement arrangement (HRA) is an employer-funded account that can be customized to meet the needs of both employees and employers.
Employers benefit from a health reimbursement arrangement by purchasing a less expensive high-deductible health plan (HDHP), then using the savings to set aside money tax-free in an HRA that pays for employees’ eligible medical expenses. This empowers employees and puts them in control of their health care.
An HRA benefits employees by putting them in control of their health care dollars and paying lower health insurance premiums.
Unlike a health savings account (HSA) or flexible spending account (FSA), an HRA is both owned and funded by the employer. The employer decides:
- How much to contribute to the HRA
- What expenses are eligible for reimbursement (within IRS guidelines)
- Whether funds roll over to the next plan year and if they do, what percent (unused funds can’t be given back to employees)
- Whether or not employees leaving voluntarily can keep their HRA balances
HRA benefits are usually provided to complement a high-deductible health plan (HDHP), but can be paired with any type of health plan or used alone. Once your HRA funds are gone, you pay all new and remaining expenses out of pocket.
The Benefits with Discovery Benefits
- Flexibility. Discovery realizes each employer’s HRA plan design can vary and we have the tools to accommodate. Do participants need to meet an out-of-pocket threshold before the HRA dollars kick in? No problem. Would you like to offer a debit card? Free of charge. Need to restrict what expenses are eligible? We can limit the debit card network. Discovery is happy to work with employers and their plan designs to come up with a mutually agreeable solution.
- Claims Exchange. Discovery can accept a claims exchange feed from health carriers at no additional charge. This means automatic reimbursements for participants. Discovery receives the claim information via file from the carrier and pays out the HRA dollars accordingly to the participants.
- Stackable Card. Everyone is looking for simple. Discovery uses the same Benefits Debit Card for all products. Participants enrolled in multiple plans like that the process is streamlined and they can use the same card. The card’s technology ensures the correct balance is pulled when they run their card.
- Integration. Discovery understands strong integrations with our clients’ other partners saves everyone time and stress in the set-up process and on-going administration of our products. Discovery has become a true industry leader with our ability to integrate with our clients’ platforms and technologies.
Your Steps to Success (It doesn’t get much easier than this.)
- Create your account and log in
- Set up direct deposit
- Order additional debit cards for your spouse or dependents (at no cost!)
- Download the free Discovery Benefits mobile app
- Manage your account on your time