The NueSynergy Health Reimbursement Arrangement (HRA) is an employer funded tax-advantaged account that can be designed to the specific needs of an employer and their employees. NueSynergy will work with employers and their agent or consultant to implement the HRA plan that helps the employer both manage their overall healthcare costs while providing employees with a benefit that assists them in paying their out-of-pocket medical expenses.
- HRA contributions are not considered part of an employee's income. Therefore, any funds used by the employee are not subject to income, FICA or worker's compensation tax; however, they are tax deductible to the employer.
- HRA funds do not have to be distributed until an expense is incurred.
- Employers determine what expenses are eligible. (i.e. deductible, co-insurance, Rx)
- Employers maintain the amount of funds to make available and when.
Each plan year, the employer will determine how much money to contribute to the HRA, set the threshold for when funds are available, as well as what expenses will be considered eligible for reimbursement. For example, an HRA could pay all eligible medical expenses, including deductible and co-insurance expenses, or the HRA could be limited to cover only dental or vision expenses.
Once eligible expenses are incurred the employee can access their HRA funds by:
- Submitting an eClaims reimbursement through NueSynergy's carrier integration module
- Submitting an online claim through the NueSynergy Member Portal
- Submitting a paper claim via fax or mail
- Using the NueSynergy Benefits debit card (based on plan design)
PREMIUM REIMBURSEMENT HRA PLAN
For employers with less than fifty (50) full-time employees: instead of offering a group insurance plan, they can allow employees to shop for an individual health insurance plan that best fits their unique needs while also helping employees to cover their monthly premium cost through an HRA.
Employers are able to provide reimbursement through the HRA up to $4,950 for individual plans and $10,000 for family plans per year. As with all HRA contributions, they are not subject to an employee's income, FICA or worker's compensation tax; however, they are tax deductible to the employer.
NueSynergy will work with the employer to manage the premium payment process, including facilitation of payment for any portion of the premium the employee may be responsible for that the HRA does not cover.
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