Did you know there's HRA administration software out there that your small business can use to administer a QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) or an ICHRA (Individual Coverage HRA)? 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 administration 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 them 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 businesses. 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: Small business owners must have a plan administrator due to privacy laws. HIPAA laws state that employee's medical expenses and insurance premiums are protected health information. Part of HRA 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 these HRAs are 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 HRAs and other small business health insurance options.
- Streamlines administration: Using HRA software streamlines the administration of health reimbursement arrangements, significantly reducing the workload for small business owners. It automates key processes like tracking employee claims, managing reimbursements, and ensuring accurate record-keeping. This technology simplifies what would otherwise be a complex and time-intensive part of managing employee benefits, allowing business owners to focus more on running their business effectively.
- Adapts to changes in the law: HRA software is designed to adapt to changes in healthcare laws and IRS regulations. This is crucial as healthcare policies and tax laws can frequently change, impacting how HRAs are managed. The software stays updated with the latest legal requirements, ensuring that your business's HRA remains compliant. This feature provides peace of mind to business owners, knowing their HRA is always aligned with current laws and regulations.
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 administration software handles privacy, record keeping, compliance issues, tax time, document generation, and more.
What to look for in your HRA administration 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 administration 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 the best HRA administration 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 onboarding 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.
Flexibility The HRA software you choose should be adaptable to various health plans and employee requirements. It needs to allow for adjustments in contribution limits and cover a wide range of medical expenses, reflecting the diversity in your team's healthcare needs.
Tracking and Documentation A robust HRA software should excel in tracking reimbursements and maintaining comprehensive records. This ensures both the employer and employees have clear, accessible documentation, essential for smooth operations and compliance.
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.
Design your plan
Customize an HRA plan that fits your business needs and budget. Our platform guides you through the process, ensuring your plan aligns with your objectives and compliance requirements.
Introduce to employees
Easily communicate the new HRA plan to your employees. Our platform offers tools and resources to help explain the benefits and how they can make the most of the plan.
Simple reimbursement process
Streamline the reimbursement process for your employees. Our intuitive platform simplifies the submission and tracking of claims, making reimbursements quick and hassle-free.
More than just software
At Take Command, we understand the unique challenges of small businesses like yours. That's why we offer more than just software - our dedicated team of QSEHRA experts is here to guide you every step of the way.
Whether you need help with compliance, employee onboarding, or policy changes, we've got you covered. So why go it alone when you can have the support and expertise of the Take Command team?
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!
Flexible and inclusive health benefits
Offering a range of health benefits is essential in today's diverse workforce. Flexible and inclusive health plans not only cater to the varying needs of employees but also reflect a company's commitment to their well-being.
Individualized health plans
Personalized health plans provide employees the freedom to choose coverage that best suits their individual or family needs, enhancing satisfaction and overall well-being.
For example, a small business could use QSEHRA to reimburse an employee for a yoga class subscription if it's considered a qualifying medical expense. This arrangement is especially beneficial for small companies looking for a cost-effective health benefits solution.
A large company could offer ICHRA to allow employees to choose their own insurance plans, catering to those who prefer alternative medicine or need specific treatments not typically covered under traditional plans.
A company offering GCHRA might supplement its group plan by reimbursing out-of-pocket expenses for mental health services, recognizing the growing need for comprehensive mental health support in the workplace.
Frequently asked questions
What does HRA software do?
HRA software helps manage Health Reimbursement Arrangements by automating tasks like expense tracking, reimbursement processing, and ensuring compliance with laws.
Can your HRA software accept payment methods?
Yes, most HRA software solutions are designed to integrate with various payment methods, streamlining the fund management and reimbursement processes.
What fees are involved?
Fees typically vary based on the number of employees and the level of service required, usually charged every month.
Can business owners participate in their HRA?
Business owners can participate in their company's HRA, provided they meet certain eligibility criteria set by the plan.
What are the requirements for administering an HRA?
Administering an HRA requires adherence to IRS guidelines, proper documentation, privacy compliance, and regular monitoring of expenses and reimbursements.
What does an HRA manager do?
An HRA Manager oversees the administration of the HRA plan, ensuring compliance, managing claims, and addressing participant inquiries.
How do employees get paid?
Employees submit their healthcare expenses through the software, and upon approval, they receive reimbursements either directly to their bank account or via check.
This post was originally published in 2018 and has been updated in 2023 to reflect all of the exciting changes in the HRA world.
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!