Control Costs While Keeping Your Employees Covered with Health Reimbursement Arrangements
A Clarity Health Reimbursement Arrangement (HRA) gives employees and their families a way to save, manage and spend employer-provided healthcare funds. Our HRA solution is built to be flexible—the dollar amount and payment schedule are customized to your plan and, unlike contributions to an HSA plan. And your employees are better able to manage health care expenses and save money by paying for different types of out-of-pocket expenses (deductibles, copays, etc.).
What Is An HRA
A Health Reimbursement Arrangement is an employer-paid health reimbursement plan. Any employer can decide to offer it to their employees. It helps employees save money by paying for different types of out-of-pocket expenses (deductibles, copays, etc.). Employers save money by shifting to consumer-driven healthcare. They pay directly for various expenses instead of through increased premiums from an insurance company. HRA Plan funds used by employees are tax deductible to the employer and employee.
HRA Plan Administration: How It Works
HRA’s are funded solely by the employer. They set aside a given amount of pre-tax dollars in an HRA account to pay for expenses not reimbursed by the employer’s health insurance. Employees get help with their day-to-day expenses, and Employers set the rules for how and when they can use those funds.
How We Stay Flexible
Health Reimbursement Arrangement Plans (HRA’s) are a flexible tool to help employers and consumers save money on healthcare. They can be set up to pay for deductible, copayment, coinsurance, prescription, and other costs. The dollar amount and payment schedule can vary based on the plans and unlike employer contributions to an HSA plan, unused funds are the property of the employer. Funds can be rolled over to the new plan year or forfeited. Clarity Benefit Solutions works closely with our employers and brokers to help determine the plan design and throughout the plan year we provide an online tools to monitor the effectiveness of the program.
Here are some common Health Reimbursement Arrangement (HRA) plan designs:
First Dollar Coverage HRA
The HRA covers first dollar healthcare deductible until the HRA is exhausted.
HRA With Employee Deductible
The company sets an out of pocket limit that the employee will incur before the HRA starts to pay for expenses. Once the employees out of pocket limit is met the HRA will cover future deductible expenses with no need for you to pay out-of-pocket until your HRA is exhausted.
Percent-Based HRA
The HRA has been designed to reimburse employees for a percentage of healthcare expenses. Until the HRA has been exhausted.
How do employees get paid?
Web Claims: Employees can snap a photo of their receipt and submit a web claim from any device with an internet connection. That includes smartphones and tablets through our mobile app – Clarity Mobile.
Pay-to-Provider: Employees can set up providers with automated direct payments, eliminating the need for receipts or paperwork.
Smart Debit Card: Prescription drug purchases and copays can be paid for and automatically validated by using our smart debit card.
HRA Store
We make it easy for Clarity consumers to use their HRA and get the best value from each dollar spent. Items purchased through HRA Store are auto-substantiated, and comply with even the most recent healthcare reform provisions. Our health reimbursement arrangement store makes it fun and easy for consumers to use their HRA and save even more money!
