HRAs are funded with employer dollars to pay expenses not covered by another health plan. An employer can opt for its HRA to pay some or all of the health expenses allowed by the IRS. For example, an HRA could pay all eligible medical expenses, including premiums for health and long-term care insurance; or the HRA could be limited to cover only dental or vision expenses. Although an HRA can have an option to carry forward unused funds to the future or for retirement, an employee cannot take their HRA funds to a new employer.
take care® HRA works with any High-Deductible Health Plan. take care HRA and Flexible Spending Accounts (FSA) are integrated automatically to allow employee contributions, while providing a single user experience. HRAs are funded solely by the employer; FSAs are funded by the employee, employer or both. Employer chooses which account pays first. Employer determines if HRA dollars rollover from year-to-year and if employee FSA contributions rollover.
Our plan consultants will work with your clients to create a plan design that meets their desired goals.