HRA Administration Software 101
What is an HRA software provider?
Because of the high margin for error when administering your own HRA plan, many businesses have opted for using an HRA software provider to ensure accuracy and to minimize the headache of doing so themselves.
An HRA software provider is a one-stop shop for setup, compliance, onboarding, policy changes, and all documentation about your HRA plan.
HRA software providers support your plan administrator by:
- Plan set up. HRA software providers work with you to develop a plan that best fits your and your employees' needs. They send out and collect the documentation needed to onboard all employees.
- Monitor the movement of funds. By automatically tracking HRA funds, you’re able to have a real-life view at your business’s healthcare expenses.
- Reviewing all reimbursement requests. An HRA software provider will review all reimbursement requests submitted by your employees. Not only does this ensure your employees get a quick turnaround on their requests via convenient notifications, but they feel comfortable knowing their private medical information is only being reviewed through a secured account.
- Record maintenance. The IRS requires all personnel records to be stored for seven years. Having all your health records in the same place means you don't have to think twice about whether your files are complete or up to date.
- Taxes. The annual tax filing is made so much easier by having all your tax records in one place, ready for reporting when the time comes!
- HIPAA requirements. HIPAA laws protect all medical records, so it’s important to take necessary precautions to ensure you’re up to code. Through an HRA software provider, the records are secured, and your employees don’t need to worry about personal information being leaked to their boss.
- Compliance with IRS regulations. Because HRAs are relatively new in the world of health care, the IRS is regularly updating laws. Instead of endlessly reading up on healthcare legislation to ensure your HRA system is up to code, HRA software providers are consistently updating their database to keep up with the newest requirements.
With anything that involves legal compliance, it’s essential to find a reputable software provider you can trust with your administration.
Don’t worry if this feels overwhelming– the support staff at Take Command is here to help!
What to look for in your HRA software
Because the penalty for failing to comply with HRA policy requirements is $100 per person per day, finding the right fit for an HRA software provider is a task that should involve some thoughtful research.
When choosing the best HRA software for you, some important considerations are:
- Do they ensure compliance with IRS regulations? The last thing you want to do is commit to a provider that doesn’t guarantee up-to-date functions. When looking for the software provider that best meets your needs, you should prioritize one that automatically updates alongside policy changes.
- Are they employee-friendly? Employees should be able to quickly and easily make and track reimbursement requests. There's little point in implementing an HRA plan if your employees can only access and navigate the required software with reference stacks of user manuals.
- Will it alleviate stress? The ideal HRA software should have a responsive and helpful support system, cloud-based access, provide automated notifications, and allow your software administrator to accurately and efficiently manage your business's HRA plan.
If you have questions about how to ensure your HRA software will work for you, feel free to reach out.
Our team will be happy to take you step by step through the process!
How do I find the best HRA administration software?
It’s absolutely possible to administer your HRA without the help of HRA administration software. However, considering the headache associated with maintaining records, staying up with compliance standards, and tiptoeing around HIPAA, we recommend looking into the benefits of using an HRA administration software.
When looking for the best HRA administration software, consider the following:
- Record Maintenance. As we mentioned earlier, the IRS requires all employee records be stored for 7 years.
- Privacy Laws. All medical records are protected by HIPAA. As a result, an employer is not permitted to administer their own HRA plan.
- Frequent Policy Changes. The IRS regularly updates policies around HRA administration. It’s essential to stay up to date with compliance terms to avoid legal ramifications and to protect employees.
- Check out this article to learn more about how to select the best HRA administration software for you!
Getting started with your HRA administration software
After you’ve found the best HRA software for your business, getting started is the easiest part!
Step 1: Design your plan.
Meet with one of our experts to determine your budget, start date, and who on your team will be eligible to participate!
Step 2: Onboard your team.
We’ll reach out to your employees to help them with the onboarding process by:
- Helping them select the plan that best fits their needs
- Completing and filing all necessary paperwork
- Giving them access to their personal portal
- Answering any questions they may have about their plan or future access
Step 3: Begin!
As soon as your team is onboarded, they can begin submitting reimbursement requests. We get to work immediately reviewing requests, maintaining records, and staying on top of all changing IRS regulations.
And for you? We’ll send you complete reports regularly so you can keep a bird’s eye view of your HRA plan while staying out of the nitty-gritty details.