And switch to a stand-alone health reimbursement arrangement (hra). this guide will answer basic questions about stand-alone hras, help you assess your employee benefit needs, and provide you the tools to design, select, and implement a stand-alone hra.. Stand-alone health reimbursement accounts (hras) allow employers to reimburse employee’s medical expenses tax-free. a stand-alone hra is a type of medical reimbursement plan.to understand how stand-alone hras work, it’s helpful to understand what an hra is and how it can be used.. As previously explained, a stand-alone hra that covers only former employees (retirees) is not subject to the ppaca market reform rules; however, the availability of hra dollars will constitute minimum essential coverage to those individuals and, as a result, may have other ppaca implications..
The stand-alone hra and the aca. at one time, stand-alone hra’s were a common feature in small business employee benefit packages. it allowed the small employer to provide financial assistance to help cover insurance premiums, deductibles, co-pays, and other qualifying health, dental, and vision expenses an employee encountered during a plan year.. Guidance interpreting the affordable care act has taken the position that the aca prohibits employers from adopting stand-alone hras for employee medical coverage because they are employer health plans that do not comply with the aca requirements regarding annual and lifetime coverage limits.. A sole proprietor with only one employee can offer a standalone hra without having to offer a health insurance plan. everyone else can only use an hra to cover limited benefits, such as vision and.
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