A funded HRA can help offset the rising costs of healthcare for employers, and a great way to pay for medical related expenses, especially retiree insurance premiums, and by paying less in taxes. OneBridge Benefits, through our relationships with leading benefit consultants, is able to service several different health reimbursement accounts (HRAs).
What a Funded HRA Is
A funded HRA account reimburses employees for out-of-pocket medical expenses not covered by health insurance. It is an employer-funded, IRS-approved, tax-advantaged employer health benefit plan.
Tax Advantages
Funded HRAs are in fact tax free; excluded from employees’ gross income. Contributions are made tax-free, earnings and interest accrued are non-taxed dollars, and the reimbursements employees receive are also not taxed. This often equates to a 50% savings in combined taxes for employees and employers. The tax-friendly design of funded HRA programs makes it an ideal fit for government agencies, Taft-Hartley trusts, and non-profit employers.
Medical Expenses
Individuals may use their funded HRAs to cover a wide variety of medical related expenses, such as prescription drugs and office visit copays. These benefit plans can also be used to pay for retiree insurance premiums. You can save tax-free dollars to cover out-of-pocket medical expenses such as:
- Deductibles
- Copays
- Vision
- Dental
- Prescriptions
- Preventative Care
- Retiree Premiums
- X-Rays
- Blood Work
- Laser Eye Surgery
- Contact Lenses
- Orthodontia
- And More…
HRA Funding
HRA accounts are entirely funded by employers, thus employees cannot add funds into these accounts. However, unused HRA dollars can remain invested and available for employees year after year and into retirement. With flexible plan design options, employers can fund these accounts in a variety of ways to meet the objectives of the plan. Whether the goal is to maximize benefit dollars for active employees or to solve for retirement healthcare, funded HRAs can help you get there with any of the following funding sources:
- Direct Employer Contribution
- Group Salary Reductions Through Employee Contributions
- Unused Leave Cash-Outs
- Excess Benefit Dollars
- Various Financial Incentives
OneBridge for Your HRA Benefit
Offering the only fully integrated recordkeeping and claims substantiation platform, OneBridge specializes in managing funded HRA accounts through its software services, making it easy for employers to adjust contributions, while keeping employees up-to-date on reimbursement claims and balances. Our proprietary software includes features for administrators, employers and employees, such as secure cloud-based hosting and web access, paperless workflow, automated recordkeeping, real-time account and investment updates, online enrollment, and more.
