HRA

How COBRA Interacts with ICHRA and HRA Plans

The Consolidated Omnibus Budget Reconciliation Act (COBRA) mandates employers to offer continuing health coverage to employees facing qualifying events such as job loss or reduction in work hours. However, navigating the interaction between COBRA and some reimbursement accounts, such as Individual Coverage Health Reimbursement Arrangements (ICHRAs) and Health Reimbursement Arrangements (HRAs), presents complexities.  What are ICHRA and HRA plans? ICRHAs and HRAs are both exclusively funded by the employer and generally not taxable to the

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healthcare costs

Demystifying Healthcare Costs: Employee Tips to Maximize Benefits and Save Money

Healthcare costs can be confusing, but with the right knowledge and strategies, just about everyone can navigate this complex landscape effectively. Below are some helpful tips for employees to maximize their benefits and save money in the process.  Understanding Healthcare Costs Before diving into cost-saving tips, it’s essential to understand the various healthcare cost components. Healthcare expenses can include premiums, deductibles, copayments, coinsurance, and out-of-pocket maximums. Additionally, there may be other costs associated with prescription

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Non-Discrimination Testing

Offering employee health benefits is a great way to attract and retain talent, but companies must follow strict regulations to ensure fairness to all employees. The IRS monitors highly compensated employees’ eligibility and compares that to benefits available to lower compensation employees. All health plans must undergo annual non-discrimination testing. Learn more below. What is Non-Discrimination Testing? IRS rules state that self-insured health plans cannot discriminate in favor of Highly Compensated Employees (HCEs) concerning eligibility or benefits.

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Who Owns a Benefit Account?

Third-party administrators enable employers to offer benefits that help them attract and retain their valuable talent. However, employers do not own all benefit funds, nor do employees. These are essential questions when enrolling in benefits and spending down funds. So, let’s discuss who owns benefit accounts and ensure everyone fully understands the benefit account portability. What is portability? Benefits portability refers to the ownership of benefit account funds. If a particular type of benefits account

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Employer Benefits Nondiscrimination Testing

Employee health benefits can be an excellent way to attract and retain talent. However, companies must follow strict regulations to ensure fair treatment for all employees. The IRS monitors highly compensated employees and their eligibility, pre-tax contributions, or available benefits compared to lower compensation employees. For that reason, all health plans must undergo annual nondiscrimination testing. Learn more below. What is Nondiscrimination Testing? IRS rules state that self-insured health plans cannot discriminate in favor of Highly

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BenefitsPRO Features DataPath CMO on 2024 Benefit Plans

In 2024, perceived coverage gaps, flexibility, and affordability receive more attention as companies weigh prioritizing value versus shifting costs.  November 27, 2023 By Bo Armstrong Originally posted on BenefitsPRO.com For 2024, brokers and TPAs will be well served to focus strongly on options that add significant value. In its recently released Survey on Health and Benefits Strategies for 2024, Mercer cited three key themes emerging from conversations with leadership from more than 700 organizations of varying

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The Value of a Consumer Directed Healthcare Account

View the infographic below to discover the value of consumer-directed healthcare accounts. The graphic features an overview of HSAs, HRAs, and FSAs, along with other helpful information. What is a Consumer Directed Healthcare Account? A consumer-directed healthcare account is a type of medical savings account that: CDH Account Types 1. Health Savings Account (HSA) The participant owns the HSA, which acts like a regular bank account. Money deposited into the account pays for eligible healthcare

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8 Employee Questions that Build Effective Benefits

Benefits programs help companies to attract and retain talented employees. They can also improve workforce health and engagement. But with four generations (perhaps even five) in today’s labor force, putting together a well-crafted plan that meets the needs of all employees can seem nearly impossible. Baby Boomers nearing retirement have very different benefit needs than Gen Z, who are just starting their careers. Millennials reaching their prime earning years will have different needs as well. With the rising cost

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Newer Benefits Options for 2024

Employer benefits have changed over the centuries to meet employees’ changing needs. While group healthcare is still standard, there are newer benefits that TPAs can offer in 2024 that may better serve the needs of both employers and employees. Health Reimbursement Arrangements Group Health Reimbursement Arrangements (HRAs) have been around for some time. The IRS first acknowledged them in 2002 to reimburse qualified healthcare costs. HRAs now include three additional types covering qualified insurance premiums and related

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