The following is a summary of a section from our free resource, The Comprehensive Guide to the Small Business HRA. If you would like to download the full resource, click here.
If your business has decided to start offering the qualified small employer health reimbursement arrangement (QSEHRA), or small business HRA, it’s important to use an administration tool that helps you stay on top of compliance obligations, makes it easy for employees to enroll, and gives your business the training and resources it needs to keep your HRA running smoothly. Let’s take a look at the top three features your company needs from an administration tool.
Automated compliance and software updates
Federal law and the IRS code impose strict requirements on companies that offer the QSEHRA. Because certain requirements can change from year to year, any software you choose should include automatic updates.
At a minimum, the software should include features that cover:
- Creation of a written legal plan and summary plan description (SPD).
- A way to collect and store employees’ electronic signatures.
- Privacy features that ensure the company does not view employees’ protected health information (PHI).
- ERISA compliance.
- Documentation regarding appeal requirements, notifications, and procedures.
- Continued coverage of dependent children up to age 26.
- Automated notice requirements for employees’ eligibility and annual allowance.
Without these features, your business could easily run afoul of tax rules and federal law. Fortunately, automated compliance software takes the guesswork out of managing your QSEHRA.
Employee tools and resources
Your QSEHRA administration tool should also include resources that help employees buy their own individual health policies and request reimbursement for eligible medical expenses.
Employee features to look for include:
- An employee welcome letter and other employee communications.
- Identification of resources that can help employees decide which policy to purchase.
- Online access to their account and a way to check their account balance
- A simple way for employees to make reimbursement requests.
- An option to request an expedited reimbursement review.
- A way for employees to track reimbursements over time.
Because the whole purpose of offering a QSEHRA is to provide employees with flexible, valuable health benefits, you want to make it easy for them to take advantage of their benefits. With the right QSEHRA administration software, you’ll be compliant with federal rules, and your employees will know where to go for info on choosing a policy and requesting reimbursements.
Business tools and resources
Additionally, the QSEHRA administration software you choose should include tools that make it easy for your business’s plan administrator to manage the QSEHRA, track reimbursements, and comply with all reporting requirements. Key features include:
- Cloud-based account access.
- Real-time access to accounting information.
- An easy way to manage employee enrollment in the QSEHRA.
- A way to track and record reimbursements (and send automatic notice of reimbursement decisions to employees).
- Online, automatic annual renewal.
While the QSEHRA is less wieldy to administer compared to traditional group health insurance, it’s not without its own learning curve—as well as tough penalties if you inadvertently fall out of compliance. A good administrative tool will give your plan administrator the training and ongoing support needed to keep your QSEHRA compliant and functioning smoothly.
With the right tool, administering the QSEHRA can be a snap. For a simple and compliant way to administer your company’s QSEHRA, consider our PeopleKeep software. To learn more about QSEHRA administration tools, or tips for how to set up the QSEHRA for your business, download our free resource, The Comprehensive Guide to the Small Business HRA.
Are you making the switch to QSEHRA administration software? Let us know in the comments below.