HRA Rules for Employees
It’s also important to understand the basic HRA rules for employees when utilizing an HRA platform. While employees don’t need to worry about paying HRA administration fees (since the employer covers those), there are a few things for employees to consider if their employer intends to utilize an HRA to help employees with out-of-pocket medical expenses.
For instance, if you are wondering, “Can I withdraw money from my HRA account?” The answer, unfortunately, is no. However, unused HRA funds can roll over to the following calendar year at the employer’s discretion. Employees might also wonder whether or not they need to have health insurance in order to make use of an HRA. The answer there is a bit more complex; in short, it depends. Sometimes, an employer may offer an HRA plan to supplement a high-deductible health plan, or an employer may offer an individual coverage HRA (which we’ll cover in more detail later on).
Other important items to note for employees include the fact that the HRA is owned entirely by the employer. Only the employer can add funds to an HRA account, and depending upon the stipulations of the plan, some of those funds (if left unused) can roll over to the next year. Funds in an HRA do not typically accrue interest, and how much money gets contributed to an HRA is at the discretion of the employer.
Another common question employees have is whether or not they are eligible to utilize HRA funds to help pay for a family member’s medical expenses. The answer, in a word, is yes. HRA monies can be used to cover eligible medical expenditures of any family member who could be considered a “dependent” on the employee’s most recent tax filing documents. Depending on the stipulations of the HRA, however, the dependent may be required to have health insurance.
Why do you need an HRA administrator?
HRA Administrators save you time and effort by outsourcing administrative functions. Trying to administer your own HRA is highly complex, so let the pros take it off your hands. An HRA administrator allows you to prevent mistakes you may make when attempting to do this on your own.
Privacy — especially regarding health — is essential for a trustworthy relationship with your employees. HRA administrators keep you compliant with privacy and HIPPA policies. And HRA administrators deal with your employees' private health information, so you don’t have to get in the middle of it.
By using an HRA administrator, you’ll have less paperwork and know everything is getting done with expertise, so you don’t have to worry.
Our HRA administrator comes with a customized admin portal to review HRA documents, reimbursement reports, payment information, and other pertinent HRA information, making it seamless for employers.
Having an HRA administrator will save you the hassle of managing your employee’s health coverage.
If you need more convincing, read here for information on why you shouldn’t administer an HRA yourself.
Best HRA Administrators
A qualified small employer HRA (QSEHRA) is a special type of HRA more suited for smaller businesses with fewer employees. QSEHRA administration software can help small business owners manage everything that a larger organization could manage with HRA administration software – except that QSEHRA plans are eligible only for organizations that employ 50 or fewer full-time employees.
The best HRA administrators can help businesses manage their HRA access and ensure that their employees can make the most of their HRA accounts when necessary. A good HRA administrator software will regularly update to make improvements, provide necessary debugging and maintenance, and also to maintain compliance, as regulations may change frequently and without warning. HRA administration software should also help create both a written legal plan as well as a summary plan description and ensure that its privacy features are both formidable and frequently updated.
From the employee’s perspective, helpful HRA administration software must be efficient and simple to use. Employees should be able to easily make reimbursement requests, request expedited reimbursement reviews if necessary, and allow employees to keep track of their reimbursement requests over time. A good HRA administration software will be accessible from any commercial device with a stable Internet connection or other wireless connectivity.
For employers both small and large and everyone in between, you want an HRA administration software that makes things as easy and uncomplicated as possible. Some good features to look for in a robust HRA administration tool or software are the ability to access accounting information in real-time, simplified onboarding processes for new hires and simple management solutions for employee enrollment in the HRA, and continual online compatibility coupled with automated updates and annual renewals. The less time and resources you have to devote to managing your organization’s HRA program, the more time you can dedicate to running the business, achieving target objectives, growing revenue streams, and more.
How to choose the right HRA administrator for your company
You may wonder how to pick a good HRA administrator for your business. When comparing the best HRA administrators, it’s important to look at:
- The price per employee
- The ease of use
- Employer satisfaction and employee satisfaction
You’ll want to use an administrator that understands all the regulations and processes related to HRAs. And one that can work with your company's specific needs. A good HRA administrator helps you navigate issues that may arise, saving you the headache of managing it independently.
Using a third-party HRA administrator like ours – Take Command – saves you time and effort.
- We can help you avoid penalties if you have trouble navigating all the compliance requirements and regulations.
- We have a quick and easy sign-up process.
- We handle the legal side of HRA administration for you.
- We take care of your tax documents to help make tax season a breeze.
- We support your employees throughout their health insurance selection.
Our HRA administrator has been used and loved by many. Connect with our team of experts so they can help you choose the right HRA administrator for your company.
HRA Administration Software
If your organization wants to learn how to set up an HRA or if you think an HRA insurance plan might be beneficial for your enterprise, you might also consider investing in HRA administration software. When a company chooses the right HRA administration tool or software, it empowers employees to access the healthcare they need in order to keep working happily and healthily, and it enables employers to spend less time and resources managing administrative tasks so that your company’s leadership can focus on achieving your business goals.
HRA administration software also helps to keep companies compliant and operating smoothly. And when employees are able to access the care they need and are easily able to file reimbursement claims, it helps to create a welcoming business culture that can attract new employees and help retain team members who have devoted years of their lives to the organization.
Implementing an HRA administration software successfully for your organization can provide your company with a significant tax advantage and help your labor force stay healthy by providing employees with access to funds to help cover qualifying medical expenses. HRA funds are flexible enough that businesses can implement them in a way that makes sense for their employees and any current employer-provided health care insurance plans. While they may seem difficult and complex at a glance, HRAs can actually be very helpful for businesses and employees alike.
Getting started with your HRA administrator
Ready to start with an HRA administrator? Contact us today! We can’t wait to assist your company with providing HRAs.
The first step you need to take is to decide:
- Which HRA is right for you – whether it’s a QSEHRA or ICHRA
- How much to reimburse
- What you will reimburse
- Whether to include part-time employees
- When to start your HRA
Then, an HRA administrator does the work FOR YOU so you can focus on your own company and the happiness of your employees.
We at Take Command provide a user-friendly platform to make life easier for employers. And we work alongside your employees to ensure they can get the most out of their new HRA. We’re here to answer all your questions, and we’ll be with you every step of the way.
Connect with us! Set up a call with our experts today to discuss the best HRA administrator for your business.