Health Reimbursement Arrangements

Employer Designed Benefit

Presently Formula Benefits has over 100 public and private sector clients utilizing our HRA administrative services.

2017 Administrative Fees:

  • $3.25 Per Employee Per Month, regardless of single or family coverage.
  • Set up Fee: $2.95 Per Employee (includes preparation of Summary Plan Description)

Advantages of HRAs for employers include:

  • Reimbursements of qualified claims are tax-deductible.
  • Unused funds can either be rolled over or reverted back to the employer.

Advantages of HRAs for employees include:

  • No use–it-or-lose-it rule like FSA’s.
  • HRAs may be offered in conjunction with other employer-provided health benefits including Flexible Spending Accounts.
  • Employees do not have to be covered under any other healthcare plan to participate, unlike a Health Savings Account (HSA) which requires a High Deductible Health Plan.
  • Employees can be reimbursed for a expenses that meet their or their families' specific needs, as opposed to a traditional plan.