01 Mar What are the benefits of offering an HRA to our employees?
You are most likely considering an HRA because you have decided to lower your health plan expenses by not providing your employees with group health insurance. The HRA will provide financial assistance to cover their eligible out-of-pocket healthcare expenses.
What is a health reimbursement arrangement?
Health reimbursement arrangements (HRAs) are tax-advantaged accounts that are funded with church dollars to pay employee expenses not covered by their health plan. The employer outlines what expenses will be covered in the HRA summary plan document. For example, an HRA could pay all eligible medical expenses, including premiums for health and long-term care insurance, or the HRA could be limited to cover only dental or vision expenses.
According to Federal regulations, the church contributions must be comparable, that is they must be in the same dollar amount for all employees with the same category of coverage. You can vary the level of contributions for full-time vs. part-time employees. There maybe other variations around comparability.
Original content by clergyfinancial.com. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.