HRA Plan Document Options Available in 2023 For Just $199

The IRS requires employers who want to set up a Health Reimbursement Arrangement (HRA) to establish a written HRA Plan Document.  An HRA is an employer-sponsored limited self-funded group health plan.

HRA Plan Documents available in 2023 from Core Documents

Section 105 HRA for one employee or spouse available since 1954. Section 105 HRA is unique because the Affordable Care Act (ACA) did not consider a one-employee HRA a group health plan. It escaped many of the limitations of the 2+ employee HRA plans after the ACA.

HRA Plan Document

Group Coverage HRA (GCHRA) for 2+ employees available since 1954, dubbed HRA in 2004 by the IRS and limited in 2014 by ACA. After the Affordable Care Act, the HRA for 2 or more employees had to be integrated with employer-sponsored group health insurance. The following six HRA design options are available.

A comprehensive HRA Plan Document can pay any or all expenses not covered by the insurance plan (see IRS Publication 502).

Deductible Gap HRA Plan Document allows employer to buy a cheaper $5,000 deductible. Employee only pays $2,000 deductible. The employer sets up HRA to pay $2,001 to $5,000 with premium savings.

Limited HRA Plan Document for any specific charge or combination of charges such as dental, large hospital copy, etc.

Medicare HRA Plan Document allows groups with less than 20 employees for employees who prefer Medicare as Primary Payer.

Retiree HRA is set up specifically for retired employee benefit payouts.

Excepted Benefit HRA (EBHRA) started Jan 1, 2020, integrated with employer group health and pays $1,950 a year for excepted benefits such as dental, vision, chiropractic, etc.

Qualified Small Employer HRA (QSEHRA) available Jan 1, 2017, for employers with less than 50 employees without group health insurance to pay individual health insurance and out-of-pocket medical. Annual limits apply, for 2023: $5,850 for Individuals and $11,800 Family.

Individual Coverage HRA (ICHRA) is available January 1, 2020, for employers of any size without group health insurance to pay individual health insurance and out-of-pocket medical.

The HRA plan document is currently discounted to just $199 from $299 in a one-time fee. The Plan Document only needs to be updated when there are changes in the Code or ACA law, or if you want to change the Plan eligibility or benefit offering.

Comments

Post a Comment

Popular posts from this blog

How To Set Up A Wrap SPD Plan Document For Just $99 To Avoid The ACA $110 Penalty

Image
The ERISA Wrap SPD plan document requirement has been around for years. It’s the Department of Labor’s (DOL) document for communicating plan rights and obligations to participants and beneficiaries of employer-sponsored group health insurance plans. Wrap SPD Plan Document It wasn’t until January 1, 2014, when the Affordable Care Act (ACA) added many new employee notification requirements, and stiff new $110 per day/per participant fines for non-compliance, that most employers became aware of and motivated to meet the Wrap SPD plan document requirement. The term “wrap” comes from original DOL guidance suggesting that the Wrap SPD plan document had to be formally bound to the insurance carrier’s benefit plan booklet. The combination of the two documents would upon distribution to employees represent a compliant Wrap SPD plan document for a particular benefit plan. Obviously, times have changed, and many of these documents are now provided electronically; thus, the “wrap-around” con...
Read more

How Does The Individual Coverage HRA Works?

Image
While health benefits have historically been one-size-fits-all, today's employees need personalisation and flexibility, which is what will win them over in a competitive job market. How, therefore, do you provide health advantages that are specifically suited to the requirements of your varied workforce, which includes employees of all ages, health FSA plan , and financial means? Individual Coverage HRA By providing Individual Coverage HRA , you may provide qualified workers with a tax-free healthcare allowance that they can use each month to pay for the personalised insurance that is most advantageous to them. If you want to know how ICHRA works, read the blog. This is a list of the procedure's four steps: First, create your benefit. The ICHRA benefit is first tailored to meet the requirements of the employee by the employer. The amount of tax-free money users want to effective reward each month in the form of a set allowance, the expenses you want to be covered by rei...
Read more

Understanding Section 125 POP Documents: A Guide for Employers and Employees

Image
Section 125 of the Internal Revenue Code (IRC) has significant implications for both employers and employees when it comes to offering and participating in employee benefit plans. One crucial document that plays a central role in Section 125 plans is the POP document, or Premium Only Plan document. In this blog, you will dive into what a Section 125 POP document is, its purpose, and why it's essential for businesses and their employees. What Is a Section 125 POP Document? A Section 125 POP document, also known as a section 125 premium only plan , is a legal document that outlines the rules and procedures for a Premium Only Plan (POP) offered by an employer. A POP allows employees to pay their share of health insurance premiums, as well as other eligible benefits, with pre-tax dollars. This means that employees can reduce their taxable income by the amount they contribute to these plans, ultimately lowering their overall tax liability. Section 125 premium only plan Why Is a Sect...
Read more