Did you know there's HRA software out there that your small business can use to administer a QSEHRA (Qualified Small Employer Health Reimbursement Arrangement)? That means you can leave the setup, compliance issues, employee onboarding, policy changes, and documentation to the experts. Cool, huh?
The right HRA software will ensure your HRA is compliant, makes it easy for employees to enroll and request reimbursements, and gives your business the training and resources it needs to keep your HRA running smoothly.
Looking for the best HRA software
"Can't I just administer a QSEHRA myself?" We get asked that a lot. It can be tempting to just buy the plan templates and administer yourself, but it may be too much for you to handle trying to juggle a business and keep up with ever changing compliance laws. There are three big reasons why this is a really bad idea.
- Record Keeping: There are many important rules and regulations when it comes to maintaining compliance with your employees and small business. For example, did you know the IRS requires you to maintain employee records for 7 years? That’s a long time! Keeping up with those records in a secure way is time consuming and cumbersome.
- Privacy and HIPAA: It's actually necessary for small business owners to have a plan administrator due to privacy laws. HIPAA laws state that employees medical expenses and insurance premiums are protected health information. Part of QSEHRA benefits allow employees to submit medical reimbursement claims. If the small business owner is attempting to work as their own administrator they would not be allowed to assist the employee with the reimbursement. In addition, it's a safe bet that most employees don't want to share their private medical information with their boss!
- Policy changes: Since QSEHRA is relatively new, there's still a lot of gray space surrounding the tool, and the more time goes on, the more clarification we get from the IRS on appropriate ways to use it. Plus, the police climate in Washington has proven to be high-drama and constantly changing, so it's important to stay up to date on the laws that affect the QSEHRA and small business health insurance options.
Does keeping up with all of this sound stressful and confusing? Fear not.
Take Command does the heavy lifting so you can focus on running your small business. We stay out ahead of policy changes that could affect you and our HRA software handles privacy, record keeping, compliance issues, tax time, document generation, and more.
What to look for in your HRA software
There are lots of HRA software options out there, but they are not all created equal. Of course we think the Take Command HRA software is the best, but regardless of what company you choose to work with, make sure they are taking care of the following things for you. And by the way, if you want to check out how we stack up against the competition, we offer all of these things plus the option for Smart Benefits and zero enrollment fees!
So choose wisely when it comes to HRA software. Failure to address any of these QSEHRA requirements could cost you big time, to the tune of $100 per person per day.
Here's what HRA software should take care of. And just remember, these are all things that Take Command's software is designed to do!
Compliance: We know, there are few words that illicit anxiety and glazed expressions more than compliance. But it's simply too important to skim over. Since the IRS rules governing QSEHRA may change from year to year, it is helpful to have an HRA tool that includes automatic updates to ensure compliance. HRA software should include the following features:
- Legal plan and summary plan description (SPD)
- A way to collect and store employees’ electronic signatures
- Privacy features that ensure the company does not view employees’ protected health information
- ERISA compliance
- Documentation for appeal requirements, notifications, and procedures
- Continued coverage of dependent children up to age 26
- Automated notice requirements for employees’ eligibility and annual allowance
→ Check out this post on HRA compliance for more details!
Employee-Friendly: HRA software should be designed to help your team make the most of their new tax-advantaged arrangement. Now that your employees will be in charge of choosing their own plan, they'll need resources to choose individual health policies that best fit their needs, their doctors and their prescriptions. HRA software should also include:
- An employee welcome letter and other employee communications to aid with on-boarding and question-answering.
- Easy, online account access
- HSA compatibility
- A simple way for employees to make reimbursement requests
- A way for employees to track reimbursements over time
- Support to answer any questions they may have.
Makes Life Easier: The HRA software you choose should include tools that make it easy for your plan administrator to manage the HRA, track reimbursements, and comply with all reporting requirements. It also should provide:
- Cloud-based account access
- Real-time access to accounting information
- An easy way to manage employee enrollment in the HRA
- A way to track and record reimbursements
- Send automatic notice of reimbursement decisions to employees
- Online, automatic annual renewal.
Just remember: a good administrative tool will give your plan administrator the training and ongoing support needed to keep your HRA compliant and running smoothly.
More than just software
Take Command is a small business that knows the ins and outs just like you do. We're here to help you tackle any need when it comes to health benefits for your small business and find the solution that's right for you. Our platform is more than just software - it's accompanied by dedicated, hands-on QSEHRA experts to help guide you and answer any questions you have along the way.
Want more info? Our team is on standby to help you see how our small business HRA administration tool can work for you. In the meantime, check out the administration chapter in our handy new QSEHRA Guide!
I wrote this blog because I care about ideas (big and little) that can help fix our healthcare system. I used to work on projects for Kaiser Permanente and the Parkland Health & Hospital System so I've seen the system inside and out. It's so important that consumers keep up with industry shifts and changing health insurance regulations. I'm also Take Command Health's Content Editor and a busy mom. Learn more about me and connect with me on our about us page. Thanks!