Health reimbursement arrangements (HRA) have gained traction with employers across the country because they’re flexible, easy to implement, and customizable. But the key to any successful HRA lies in its administration, including compliance, management, and privacy rules.
HRA administrators help organizations facilitate their HRA according to Internal Revenue Service (IRS) regulations so they can have an employee health benefit without the headache.
In this blog, we’ll cover why employers need an HRA administrator and the popular HRA administrators available for organizations.
New to HRAs? Watch our webinar on how HRAs work for employers
What do HRA administrators do?
HRA administrators help organizations with all the details of HRA administration, including compliance services, documentation storage, and reimbursements from IRS Publication 502. HRA administrators typically come in the form of a web-based tool or software.
A good HRA administration tool should help you navigate your HRA benefit from start to finish. The software you choose should make it easy for your company’s designated plan administrator to manage your HRA effectively and make it easy for an employees to use their health benefit.
HRA administration software takes care of the following for your organization:
- HRA set-up
- Creation and distribution of plan documents
- Tracking of HRA funds
- Document review for reimbursement
- Electronic storage of employee receipts and invoices
- Onboarding employees to their health benefit
- Tax documents and year-end reporting
- Privacy compliance
Most importantly, HRA software should be designed to stay up-to-date with changing regulations. For example, if you have a qualified small employer HRA (QSEHRA), the IRS changes specific guidelines from year to year, such as contribution limits. It’s helpful to have an HRA administration tool that automatically updates annually to ensure compliance.
Why do you need an HRA administrator?
When dealing with your employees' health, it’s important to handle things correctly. While you can self-administer an HRA plan, it’s easier to have the major tasks handled by an HRA administrator that knows the rules and regulations, so you can focus on running your business.
As a business owner, it can be tricky to keep up with medical records, secure health information, paperwork, and reporting requirements that all come with HRAs. HRA administration software handles all that and more to make your life easier and provides your employees with a platform where they can access easy HRA reimbursement submissions.
The following are three main reasons why having HRA administration software is crucial:
- Record keeping: The IRS requires employee documentation, such as healthcare receipts, for seven years. Keeping those records secure can help you in case of a future IRS audit.
- HIPAA: HIPAA regulations consider any employee's medical expense as protected health information (PHI). Therefore, it’s important employers keep a safe distance from their employees’ reimbursement claims and medical information.
- Policy changes: HRAs often have changing regulations, and most have reporting requirements. It's essential to stay updated on plan changes, healthcare reform, and health insurance options.
Popular HRA administrators
A proper HRA software is crucial to administrating your benefit efficiently and compliantly. There are many organizations out there that offer HRA administration tools. But how do you know which is the right one for you?
The following popular companies offer HRAs and HRA administration software to help you manage your health benefit. We’ll go over a little about them, which HRAs they offer, and standout features.
HealthEquity
Founded in 2002, HealthEquity works to give their customers more choice and control over their healthcare and financial future. They serve 14 million members and 120,000 organizations, and have 185 network partners.
HealthEquity is most commonly known for offering the popular health savings account (HSA). Unlike other HRA administrators, HealthEquity owns the platform, so they have complete control over designing a customizable experience. If you’re looking for unique plan features, then HealthEquity’s platform could be right for you.
Notable HealthEquity HRA highlights:
- HRAs they provide
- Standard HRA
- Group health plan HRA
- Medical & pharmacy HRA
- Retiree-only HRA
- QSEHRA
- Plan features
- Mobile app
- HRA administration software with a customizable platform
- Integration capabilities with a flexible spending account (FSA) via one debit card
- Health incentive account available
- 24/7 customer support
HSA Bank
HSA Bank offers several tax-advantaged accounts and administrative solutions to help employers manage health insurance costs, provide a more flexible benefits package, and promote a healthy lifestyle. With over 20 years of experience, they’re a leader in the consumer-directed healthcare industry.
In addition to HRAs, they also offer HSAs, FSAs, premium reimbursement accounts, and commuter benefits. Customers looking for specific-use HRAs, like for retirees, can benefit from the HRAs that HSA Bank offers. However, their plan features aren’t as flexible as other providers.
Notable HSA Bank HRA highlights:
- HRAs they provide
- First dollar HRA
- Stacked or member deductible HRA
- Coinsurance HRA
- Incentive HRA
- Retiree HRA
- Plan features
- Mobile app
- Plan document creation
- HRA management services
Aetna
Since 1853, Aetna has provided individuals, employers, and healthcare professionals with innovative benefits, products, and services. Their health insurance services include medical, pharmacy, and dental plans, Medicare and Medicaid plans, and behavioral health programs.
About 39 million people choose Aetna to help them make healthcare decisions. In addition to an HRA, they also offer other health coverage like retirement reimbursement arrangements, FSAs, and HSAs. However, they only offer one HRA, so customers looking for more variety in their health benefit options may be restricted.
Notable Aetna HRA highlights:
- HRAs they provide
- Aetna HealthFund HRA
- Plan features
- Mobile app
- Member website that assists in choosing healthcare, comparing costs of doctors and facilities, looking up in and out-of-network costs, and searching for prescription drugs
Paychex
Paychex is a leading human capital management solutions provider for payroll, benefits, human resources, and insurance services. Currently, they pay one in 12 U.S. private-sector employees and are the largest human resources company for small to medium-sized businesses.
Outside of payroll, they offer a variety of employee benefit coverage, including FSAs, dependent care FSAs, HSAs, and HRAs. While they offer a range of HRAs, their plan features are limited, so customers wanting more customization in their HRA software may not have as many options.
Notable Paychex HRA highlights:
- HRAs they provide
- Individual coverage HRA (ICHRA)
- Excepted benefits HRA (EBHRA)
- QSEHRA
- Spousal HRA
- Retiree HRA
- Medicare HRA
- Integrated HRA, also known as a group coverage HRA (GCHRA)
- Plan features
- Member website
- Customer support from Paychex HRA benefit specialists
Take Command
Since they started in 2014, Take Command’s mission has been to create a more consumer-focused healthcare system. They exclusively offer HRAs and provide HRA administration software to manage their products. They support all 50 states and have assisted 18,000 employers with implementing an HRA for their business.
Even though Take Command offers a QSEHRA and ICHRA, which are two of the most popular HRAs available, customers that have a group health plan would likely fit better with an HRA administrator offering an integrated HRA.
Notable Take Command HRA highlights:
- HRAs they provide
- QSEHRA
- ICHRA
- Plan features
- HRA management software with an all-in-one platform
- Health insurance shopping support
- Customizable HRA design
- Full HRA compliance and reporting capabilities
- Ongoing account support
PeopleKeep
PeopleKeep (that’s us!) is a benefits administration software company offering personalized employee benefit solutions. We serve businesses of all sizes from various industries across the country. Our software is intuitive and user-friendly, so providing more accessible employee benefits to organizations is now easier than ever.
We’ve processed 35 million dollars in reimbursements, reviewed over 200,000 qualified medical expenses, and service over 15,000 active users. At PeopleKeep, we offer three distinctive HRAs that work for every company size, budget, and health insurance status, plus a stipend management software that allows employees to get reimbursed for healthcare, wellness benefits, and more.
Whether it’s a small business looking for a standalone health benefit or a large employer looking to supplement their group health insurance plan, or an employer hoping to boost their benefits package with a reimbursable employee stipend, PeopleKeep has just what you need.
Notable PeopleKeep HRA highlights:
- HRAs we provide
- QSEHRA
- ICHRA
- Integrated HRA
- Plan features
- HRA management software with an all-in-one platform
- Documentation storage
- Customizable HRA design
- Full compliance and reporting assurance
- Award-winning customer support team
Check out an overview of our software to see how it can work for your organization
Conclusion
An HRA is a great choice for employers looking for a health benefit they can customize to get the biggest bang for their buck. However, it’s important to use an HRA administration tool to stay on top of compliance regulations and keep your HRA running smoothly.
At PeopleKeep, we offer several HRAs that can fit any organization’s health benefits needs. And our HRA administration software can keep you compliant and more hands off—leaving you with more time to focus on running your business. Schedule a call with one of our personalized benefits advisors today, and we’ll get you set up with the right HRA for your company.
