Health Reimbursement Arrangements (HRAs)

Health Reimbursement Accounts (HRA's) are enmplyer funded reimbursement plans made available to covered employees as part of the overall medical benifits plan of the employer. They represent the one of the available vehicles for a covered person to be a cost conscious consumer of health care services. With the increasing costs for health plan coverage to employees, many employers are seeking higher deductibles in the plans to make insurance coverage affordable.

The basic HRA benefit plan design is for the employer to provide a high deductible major medical benefit plan, either self-funded or insured. As an example the plan may carry a $1,000 annual deductible per person with a maximum deductible of $2,000 per family. This deductible will save the employer current premium cost. The employer then takes some portion of the savings and makes those dollars available to the employee in an HRA.

By definition HRA's are reimbursement accounts, meaning that it is expected that employees you will incur a health care cost before the claim can be paid from the HRA. As the result, they will be required to file an Explanation of Benefits form showing that the claimed expense was not paid by the High Deductible Plan before the claim will be allowed. The claim will then be processed and reimbursed at that time. The Employee and the Employer share
the up-front costs of care based on the provisions provided in the plan. Covered expenses after the deductible are covered under "Your" Health Plan at 100% (80%, etc.)

Funding arrangement is through an employer-funded account, accessed by
Securus A&C, LLC for check writing disbursements of plan benefits.