According to Zane Benefits’ website, employers choose the HRA allowance amounts and the frequency they will they be available (monthly or annually). For example, an employee could have a $100 monthly HRA allowance, made available at the beginning of each month. Or, an annual allowance of $1,200 made available at the beginning of the plan year.
There is no minimum or maximum HRA contribution amounts, and all HRA funds are notional (paid only after the medical expense is substantiated).
HRA Plan Design #3: HRA Classes & Eligibility
According to Zane Benefits’ website, employers can provide different HRA allowances by class of employee. With HRA class design, employers can allocate different HRA allowances based on bona-fide job criteria such as job description, length of stay with the company, geographic location, part-time or full-time status, etc. ERISA and HIPAA allow this, as long as all "similarly situated" employees are treated equally.
HRA Plan Design #4: Annual Rollover of Unused Funds
According to Zane Benefits’ website, employers choose what happens to unused HRA funds at the end of the plan year. An HRA can be designed with full rollover of unused funds, a capped rollover of unused funds (a maximum amount to rollover), or no rollover of unused funds ("use it or lose it").
HRA Plan Design #5: HRA Eligible Medical Expenses
According to Zane Benefits’ website, the IRS sets the definition for medical expenses that can be reimbursed through an HRA (see Section 213(d) of the Internal Revenue Code). From this list, however, an employer can limit expense categories not to reimburse. Categories may include health insurance premiums, doctor's visits, hospital care, pharmacy, mental health, physical therapy, etc.
HRA Plan Design #6: HRA "EOB-Only" Requirement
According to Zane Benefits’ website,
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