Back in the spring, NueSynergy wrote about the basics of a Spousal Incentive Health Reimbursement Arrangement (SIHRA). Now, as the year closes, NueSynergy is excited to list off many frequently asked questions (FAQs), associated with this account. Here they are as followed:
How does a SIHRA work and how is it beneficial?
A SIHRA’s goal is to offer an employee’s spouse the opportunity for full coverage on eligible health expenses without the hassle of co-pays, coinsurance, and deductibles. This is all possible if an employee is part of a company’s group health plan. Once that’s established, then an employee can simply elect their spouse and/or dependent(s) to the plan. This allows their spouse to become incentivized through a SIHRA if he/she has access to a group health plan through their employer or a different organization.
When does enrollment start?
Enrollment takes place either within 30 days of a qualifying event, during the spouse’s annual open enrollment window or once a new employee is eligible for benefits.
What’s the enrollment process?
The process is as follows:
- Employee elects coverage for themselves (or employee + dependent) on employer-sponsored group health plan
- Employee’s spouse enrolls in his/her qualified alternate group health plan
- Employee (or their spouse) completes SIHRA enrollment and attestation e-forms via the online benefit administration system and provides proof of premium contribution paid for alternate group plan coverage
How to complete SIHRA enrollment?
In order to complete enrollment, a spouse is required to provide:
- Proof of paid premium contribution: paystub showing premium contribution amount (pre or post tax)
- Plan details indicating the cost of each coverage tier (not required if the entire family is enrolling)