What is Aetna HRA?
An Aetna HealthFund® Health Reimbursement Arrangement (HRA)* gives you access to quality care. And it helps you stretch your health care dollars. Our HRA combines an Aetna health insurance or benefits plan with a fund paid for by your employer. This fund helps you pay eligible out-of-pocket health care costs.
Can an HRA and HSA coexist?
Yes. If the HRA meets the requirements for an HSA-qualified medical plan and you satisfy all other eligibility requirements, you can open and fund to an HSA and receive employer reimbursement funds tax-free through an HRA. You’re eligible to fund an HSA since your HRA is now an HSA-qualified medical plan as well.
Does HRA go towards deductible?
A Your HRA contribution is 100% tax deductible. Also, the money you put in your employees’ HRA is not reported as income, so they’re getting tax-free money to use for their medical needs.
What are the disadvantages of an HRA?
Potential Disadvantages to Using Health Reimbursement Account
- 1) HRA Plan Setup. The first potential issue is actually setting up the HRA plan properly.
- 2) Substantiation Requirements.
- 3) Additional paperwork and ID Cards.
- 4) First year claims exposure.
- 5) Cash Flow Issues.
- 6) Employee Complaints.
- 7) Eligible Employees.
Does HRA pay copays?
Your employees can use it to help pay for eligible medical expenses. Money from the HRA helps them pay their health plan deductibles, coinsurance and copayments. Money they don’t use may be carried over to the next year and used for future medical costs, if you allow it. It could be a percentage, called coinsurance.
What’s the difference between a HSA and a HRA?
HSA vs. HRA: health savings accounts and health reimbursement accounts help you save for medical costs. Read on to learn which is right for you. Menu burger Close thin
What do you need to know about a HRA?
What Is an HRA? Health reimbursement arrangements, or HRAs, allow your employer to flow money to you for qualified medical expenses. Basically, these are dollars your employer earmarks just for health-related expenses. The main thing to know about HRAs is that they’re employer-owned.
Can a self employed person enroll in a HRA plan?
Yes, as allowed by IRS guidelines. *You may not enroll under this option if you are considered self-employed (including partners and more-than-2% shareholders in a subchapter S corporation). Please refer to your plan documents, including specific information on your HRA, or contact your employer for more information.
Can You Use Your HRA to pay for a co-pay?
In Allen’s case, his HRA does not cover co-pays but it can be used for prescription medications. So when Allen gets a sinus infection and goes to see his primary care doc, he can’t use his HRA to pay the $20 co-pay but he can use it to pay for the $15 nose spray his doctor prescribes him.