Health Reimbursement Arrangements (HRA)
Ever increasing in popularity, the HRA is typically linked to an HDHP as a way to provide an additional benefit to employees in the event of qualified medical expenses. The account, which is backed exclusively with employer dollars, is notational in that the employer provides reimbursement only when the employee incurs an expense. The employer has the ability to design the plan to allow for a carryover from one plan year to another, which empowers the participant with multi-year accumulation potential.
DPI-105: A Key Component of the DPI-Suite
An HRA provides the employer with unlimited flexibility, creating cost-saving opportunities for the employer while giving employees choices and control.
DPI-105 allows you to take full advantage of this flexibility by letting you set up an employer-funded Health Reimbursement Arrangement with one or more underlying Health Reimbursement Accounts (HRAs) to cover employee medical expenses.
The HRAs can be linked to a health coverage policy/plan (usually with a high deductible) where the employee must participate in the policy/plan to be eligible for the HRA. The HRAs can also be non-linked; in other words, designed to stand alone to reimburse employees for expenses such as dental, vision, or wellness.
After much study, we believe certain features are essential in an HRA administration system. Consequently, we included these features in DPI-105. For instance, our system ...
- Has an easy-to-use, comprehensive proposal system
- Handles multiple HRAs under one arrangement
- Offers both a Carry-Over Option and a Spend-Down Option
- Covers both Linked and Non-Linked HRAs
We also believe flexibility is crucial when marketing HRAs. Employers are often adamant about how they want their employee benefits to be administered. For instance, with this system, not only can you choose whether or not you want to carry-over unused funds, but you can set the amount or percentage to be carried forward. This is only indicative of the flexibility that DataPath 105-HRA system offers. You will find it in all areas of administration.
The DPI-105 system, simple in concept and application, is appropriate for employers of any size. As with all our systems, it allows for simple or sophisticated plan designs and efficient administrative performance independent of the employer's health insurance.