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Frequently Asked Questions

How do participants benefit from the HRA plan?
How does the plan work?
How do employees participate?
Can participants control contributions going into the plan?
How do participants receive reimbursements?
What is an eligible expense?
Do funds carry over at the end of the plan period?
Do employees need to enroll each plan period?
How is the plan regulated?
Who do I contact for more information?

How do participants benefit from an HRA plan?
The HRA plan benefits participants by allowing them to be reimbursed up to a specified amount each year for certain eligible healthcare expenses. Each dollar that goes into the plan is provided by the employer for the purpose of healthcare expenses, so the benefit is free from federal, state and Social Security taxes.

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How does the plan work?
The employer identifies who is eligible (i.e. all employees with over ninety days of service) within discrimination requirements, the contribution amount (i.e. $600.00 per year per eligible employee payable at $50.00 per month), and the duration of the plan period (though not required, employers often select an annual plan period to coincide with other health-related benefits). Participants receive contributions in an account and submit claims for reimbursement of approved expenses.

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How do employees participate?
All eligible employees are automatically enrolled in the plan unless they specify their intent not to participate. Participants submit requests and receive reimbursements for approved expenses incurred on or after the start of the HRA plan. Please note that employers are permitted to require reimbursements to be paid out of a participant's Healthcare FSA (if applicable) before HRA funds can be utilized.

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Can participants control contributions going into the plan?
Participants are not permitted to make any changes to the contribution amounts set forth by the employer.

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How do participants receive reimbursements?
Participants can fax, email or mail claims and supporting documentation directly to Chard Snyder. Supporting documentation can be a receipt, a bill, and/or a signed affidavit validating the eligible expense. After the claim has been reviewed and the expense approved, payment is then issued to the participant via direct deposit or a check. Claims are processed daily and payments are issued at least once per week.

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What is an eligible expense?
An eligible expense is any healthcare expense incurred by a participant, their spouse, or dependent, that is approved by the IRS and eligible for reimbursement under the plan as specified by the employer. In addition to out-of-pocket healthcare expenses, an HRA plan may or may not also allow for health insurance premiums to be reimbursed. Please note that expenses reimbursed through the plan cannot be itemized and resubmitted through an income tax return or any other benefit plan.

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Do funds carry over at the end of the plan period?
Any unused amounts left in the accounts at the end of the plan period may or may not be carried over into the next plan period. Participants have access to these funds from year to year as long as they remain an eligible employee and carryover is permitted by their employer. HRA plans can even be designed to allow access to funds after a participant has terminated employment, if permitted by the employer.

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Do employees need to enroll each plan period?
All eligible employees must sign a notification form for each plan period. Although there is no need for re-enrollment, employees may specify their intent not to renew participation.

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How is the plan regulated?
In addition to regulations brought forth from Section 105 of the Internal Revenue Code, HRA plans are also regulated in part or in whole by the following entities and legislation:

Department of Labor
Federal, State and Local Courts
Internal Revenue Service
Pension Welfare Benefits Administration
US Congress
COBRA
ERISA
HIPAA
Section 104
Section 106
Section 152
Section 213
Section 404
Section 419

Please contact our office with any questions about plan regulations.

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Who do I contact for more information?
If you need assistance with an HRA plan, please contact us.

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