Health Reimbursement Arrangements

A health reimbursement arrangement (HRA) is an employer-funded plan to reimburse employees for qualified medical expenses. The employer sets the terms of the plan, and the employee can request reimbursement for medical expenses incurred up to a designated amount. The benefits to the employer and employee are two-fold, as the reimbursements can be claimed as a tax deduction by the employer and the reimbursement dollars are tax-free for the employee.

As of 2020, employers can also offer their employees an individual coverage HRA to use as pretax dollars towards the purchase of their own comprehensive individual health insurance.

Administrative Services for HRA Plans

Administrating your health reimbursement arrangements on your own can be a challenge. You need an administrator who can keep up-to-date on your compliance obligations, offer a smooth process for enrolling employees, and monitor your reimbursements and liabilities.

Burnham & Flower enhances the effectiveness of our clients’ Human Resource Departments by providing administrative services for HRAs. Our in-house third-party administration (TPA) division handles all aspects of customer and compliance services related to reimbursements. Quality is monitored through regular claims audits and daily productivity reports.

Our in-house services include, but are not limited to, a premier enrollment/administration system, an employee portal and mobile app, streamlined EOB retrieval, and paperless claims submissions. Detailed claims information is also made available to employers and employees.

If you are based in the state of Michigan, contact Jack Schmitz at jschmitz@bfgroup.com or 800.748.0554 for more information, and if you are based in the state of Ohio, contact Tracy Ames at tames@bfgroup.com or 800.748.0554.