HRAs help you have a happy team and a healthy budget. Choosing an HRA is great, but a solid implementation plan is just as important. In this article, you’ll get HRA facts, tips, a step-by-step implementation guide and more.
Be an HR Hero With ICHRA
If you’re still researching HRAs, here is a short list of why they’re a great choice from a human resources perspective.
- Attract & Retain Top Talent with Amazing Health Benefits
- Get On-demand Compliance and Regulatory Support
- Eliminate Unnecessary Work, Avoid HR Stress & Burnout
- Balance the Cost of Health Benefits with Overall Value
Learn How To Be an HR Hero With ICHRA
Get Informed: HRA FAQ
- What is an HRA?
An HRA is a tax-advantaged benefits solution that allows employers to reimburse their employees for qualified health costs or individual insurance premiums. - How does an HRA plan work?
The employee pays for health care expenses or individual health insurance premiums, and the employer reimburses them. - What types of HRAs are there?
There are several types of health reimbursement accounts. Take Command specializes in the two most common arrangements: ICHRA and QSEHRA. - What are the features of an HRA?
HRAs are an appealing alternative to group insurance for both employers and employees. Cost savings, employee choice, and no participation requirements are a few of the benefits.
Get the Comprehensive HRA Guide
Lean Into Change Management
Change can be hard. That’s not a surprise, but knowing something and knowing what to do about it are two different things.
We encourage our clients to embrace change management in order to make the HRA adoption process the best it can be for both the company and employees. Take a look at this guide from Harvard Business School to get insights and inspiration.
5 Critical Steps in the Change Management Process
Plan Your HRA Implementation
At Take Command, one of the things we love most is helping our clients. That’s why we put together a step-by-step plan for implementing an ICHRA or QSHERA. Here is a short list; hop to the link for more detail, or download our HRA onboarding guide.
And remember, we’re the #1 HRA administration platform in the country, and we’re here to help you implement an HRA from start to finish.
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Pick an HRA type: ICHRA for employers with 50 or more employees, QSHERA for small businesses.
- Select a start date: You choose your start date.
- Design the plan: Determine eligibility and define allowance amounts for employees.
- Draft legal documents: Establish a legal plan that complies with IRS and Department of Labor regulations.
- Educate employees: Let employees know what this change means for them and how to choose a plan.
- Assist with getting insurance: Provide decision-making tools and information about HRAs.
- Employees choose their plan: Employees purchase the individual plan they want.
- Submit proof of coverage: Employees submit a document from their insurer confirming they are covered on an individual health plan or claims for reimbursement (can be as easy as snapping a picture of a receipt).
- Reimburse: Employers reimburse employees for valid claims.
We know this is a lot of detail, but we are here to help! Contact us at any point in your decision-making process, and we'll guide you through HRA adoption.
Learn how to implement an HRA with our HRA onboarding guide
Use the Take Command Admin Resource Center
We’ve put everything you need to roll out your new company benefit all in one place. Orientation videos, employee resources, sample email announcements and more.
Take Command Admin Resource Center
Confidently Respond When An Employee Says, Here’s What I Found on Google
When employees hear that your company is considering (or has adopted) an ICHRA, they’ll likely do what we all would: Google it. If employees do an online search about what ICHRA questions to ask, they may see something like this:
Google Result: Top HRA Questions to Understand Your Allowance & Benefits
- Allowance details: Inquire about the maximum dollar amount your employer will provide and how often these funds are distributed.
- Eligible expenses: Ask if the funds cover only health insurance premiums or also qualified medical expenses, and what qualifies as an eligible expense.
- Rollover policies: Find out if unused funds can be rolled over to the next year.
- Effective date: Confirm the date the ICHRA benefit becomes effective for you.
Form Your Response
The answers to these questions will be detailed in your company’s HRA plan. If you’re already with Take Command, contact our customer service team, and we’ll happily walk through your questions. If you’re deciding who to go with, we’d love to be your ICHRA administrator!
- Allowance details: You can allocate the same allowance for everyone, or you can customize contributions based on employee classes.
- Eligible expenses: You can reimburse for health insurance premiums and/or qualified medical expenses.
- Rollover policies: You can allow unused funds to roll over monthly or annually, or adopt a "use-it-or-lose-it" policy where funds do not carry over.
- Effective date: You choose the effective date for your company.
Tell Your Broker About Take Command
If you’re working with a broker, ask them about an HRA and share our ICHRA for brokers page.
Let's talk through your HRA questions
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!
