How do I know if my HRA claim was denied?
You will receive an email indicating the reason for the denial along with instructions for submitting the requested documentation.
How will I know if my claim was denied or needs more documentation?
You will receive an email indicating the reason for the denial along with instructions for submitting the requested documentation.
What documentation is required for reimbursement from my HRA?
Depending on your HRAs plan design that are two possible types of supporting documentation for HRA claims:
i. Explanation of Benefits (EOB): Each time you submit claims to your health insurance carrier, you will receive this statement detailing what the health plan will pay and what you must pay. For expenses that are partially covered under another insurance plan, you must attach a copy of both of the EOBs.
ii. Itemized Bills: For expenses that are not submitted to another insurance plan, you must attach a copy of an itemized billing containing the following information:
– Name of patient
– Name and address of provider
– Description of service
– Date of service
– Amount of service
What happens if I do not use all of my HRA funds?
Depending on your HRA’s plab design, an HRA can be set up to roll your funds from one plan year to the next. If your employer offers “fund rollover” it will be described in your Summary plan documents. Here’s how HRA fund rollover typically works: at the end of the plan year, you will have a certain amount of time (“run-out period”) to submit claims for services incurred during the prior year. At the end of the run-out period, or at a date set by your employer, all or a portion of your remaining funds may rollover to the next plan year or to a carryover account. Your employer may set the following rules:
1) A Percentage of remaining funds may rollover, such as 50%. So, if you have $512 on the fund rollover date, you can rollover $256.
2) A Maximum amount may rollover, such as $250. Taking the example above, only $250 would rollover of the remaining $512.
3) A Percentage up to a Maximum, such as 50% up to $250. Again, $250 would rollover, using the example above. If you had $300 remaining, then only $150 would rollover (50% of $300).
4) All funds – all remaining funds may rollover to the next plan year.
What is nondiscrimination testing?
Each year, the IRS requires companies with pre-tax reimbursement accounts to complete nondiscrimination testing. Nondiscrimination testing ensures that the business owners and Highly Compensated Employee(s) (HCE) do not receive a disproportionate benefit from a pre-tax plan compared to other employees.