HRAs are a popular alternative to traditional group health insurance. As companies of all sizes learn about the new regulations that make HRAs more flexible, accessible and also simple to use, they are gaining in popularity. HRAs give you the freedom to choose a plan that works best for you! What is an HRA plan? Let’s take a look at some of the most common HRAs and the strategies for them.
What is a HRA?
HRA is the health and wellness compensation program. This is a tax-advantaged tool that is enhanced with a set of guidelines to ensure they are used correctly and also are achieving their intended objective, which aids staff members to spend for benefits tax-free.
You can read about two important HRAs: the ICHRA, or private insurance coverage HRA, which has no restrictions on business size or compensation. The QSEHRA is a certified small company HRA that is designed for companies with fewer than 50 employees.
The only wellness compensation plans that allow companies to reimburse staff members for certified medical expenses and also medical insurance without taxation are these HRAs. The HRA has policies and guidelines to ensure that employees are treated fairly, as well as specifications on the types of health insurance covered.
What is a HRA strategy?
for QSEHRA
Before a member of staff can participate in a QSEHRA they must provide proof that they have the Minimum Necessary Protection. (MEC) This is specified by Internal Revenue Service in Area 106(g). MEC is an acronym that comes from the Affordable Treatments Act.
- Clinical strategies of major importance: Major medical strategies are those that have been certified by the Affordable Treatments Act (ACA), as well as those that are certified as Minimum Needed Protection.
- Trainee Insurance Policy
- You partner’s insurance strategy (varies by QSEHRA): There are subtleties that you need to be aware of when it comes to compensation for costs if you are covered by the team insurance strategy of your partner. The compensation is only for the portion of team costs not paid by your business partner. Secondly, many team strategies are paid pre-tax from your partner’s earnings.
- Medicare, Medicaid (youth medical insurance), CHIP (youth medical insurance programs), Tricare and VA Treatment are all federal government health care strategies that qualify as Minimum Needs Protection.
- QSEHRA allows you to repay the monthly costs for both private and oral insurance policies. You can only claim compensation if you are a partner with a company that offers vision and oral benefits. If your partner has paid for the cost of your insurance and oral strategies, you will only be reimbursed for them on a tax basis.
- Limited Benefit Strategies: These strategies are usually less expensive than Major Medical plans, but they only offer a limited number of benefits (instead of unlimited advantages). These plans include temporary strategies, managed indemnity strategies and also mishap strategies. QSEHRA allows you to repay the cost of these strategies tax-free if you have both a Minimum Needs Protection insurance policy and also a restricted benefit strategy that pays a clinical benefit to the provider (and not a monetary advantage to you).
- Sharing Ministries: You can set up a faith-based sharing ministry as long as it is accompanied by a MEC plan.
for ICHRA
The most important thing that employees can do in order to use a company ICHRA plan is to sign up for a qualified health insurance. This means they must register for a policy that offers coverage for essential benefits such as preventative and wellness services, emergency situations, as well as other vital solutions.
- The exchange offers significant clinical strategies (Bronze Silver and Gold).
- Medicare (Component A+B, or Component C)
- Catastrophic Strategy (restricted for those under 30 years of age or needing to be approved for a challenge exception).
- Trainee Medical Insurance
Please note that TRICARE, sharing ministries and partner’s strategies do not include ICHRA.
Do you still have questions about HRA strategies and HRA?
Take Command is the place to go if you are a member of staff looking for a certified ICHRA plan. You can compare plans and shop online. Check out our QSEHRA overview for more information. This overview was created to ensure that you get the maximum benefit from the QSEHRA. You can also talk to one of our HRA experts on the Take Command website.
