Small Business

How to choose a small business HRA (QSEHRA) administration tool

by Ali

Is your small business ready to offer your employees a small business HRA (QSEHRA)? Once you have determined your budget, your next step is to find an HRA administration tool. The right HRA administration tool 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.  

Let’s take a look at the key features your company needs from an administration tool.  

Compliance 

The IRS sets the guidelines for companies that implement the Small Business HRA (QSEHRA). Because the rules 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 (PHI). 
  • ERISA compliance. 
  • Documentation regarding appeal requirements, notifications, and procedures. 
  • Continued coverage of dependent children up to age 26. 
  • Automated notice requirements for employees’ eligibility and annual allowance. 

Easy for employees to use 

Employees will need resources that help them buy their own individual health policies and request reimbursements for medical expenses.  Our platform can help your employees search for plans based on their needs, their doctors and their prescriptions. 

Employee features should also include: 

  • An employee welcome letter and other employee communications. 
  • Resources to help employees decide which policy to purchase. 
  • Online access to their account. 
  • HSA compatibility. 
  • A simple way for employees to make reimbursement requests. 
  • A way for employees to track reimbursements over time. 

Easy for you to use 

The HRA administration 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.  

Key features include: 

  • 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 (and send automatic notice of reimbursement decisions to employees). 
  • Online, automatic annual renewal. 

A good administrative tool will give your plan administrator the training and ongoing support needed to keep your HRA compliant and running smoothly.   

Request a meeting with our small business experts

Take Command Health as your plan administrator 

Take Command Health is ready to be your HRA administrator.  We offer support for you as a business owner as well as your employees. Our small business experts will take care of the details so you can go back to managing your business. 

Here's how we can help. 

For your employees: 

  • We offer a data-driven platform to help them pick the best on- or off-exchange plan based on their preferred doctors, unique needs and prescriptions. 
  • Our customized portal allows them to enroll in the HRA online, view their HRA documents, submit medical expenses (if allowed), access their membership benefits, and upload their proof of coverage for compliance checks. 

For your business: 

  • We handle all the legal work and make tax season easy and painless 
  • Employee onboarding 
  • An easy and quick online signup process 
  • A customized admin portal for your business allows you to review and approve HRA documents, view monthly reimbursement reports, add/remove employees, manage subscriptions, update payment information, and see overview information about HRAs.

If you want to explore what types of small business HRAs are right for your company, our Small Business HRA Strategy Guide is another great place to start for optimizing your tax savings. 

Learn more about our Small Business Platform

Picture of Ali

Hi, I'm Ali! I wrote this blog because I love helping people decode confusing insurance jargon and understand the fine print. I'm a licensed health insurance professional and specialize in simplifying health insurance for individuals and small businesses. My QSEHRA articles have been featured regularly on Accounting Today, Accounting Web, HRWeb, and other industry publications. I'm also a member of Take Command Health's client success team and a full-time mom. Learn more about me and connect with me on our about us page. Thanks!