Health Reimbursement Accounts

[Guest mrilao]

Health Reimbursement Accounts

We are thinking about restructuring our benefit arrangements to include a health reimbursement account - HRAs (all employer money per 2002-45 and 2002-41 - rather than FSAs).

I've been reviewing the recent IRS guidance regarding HRAs and was wondering what the general thought is on having a funded aspect to the arrangement.

For instance, the guidance mainly centers on amounts held in the employer's general assets - but I have a few providers/administrators trying to sell me on a "funded" product - where amounts are put in each year and follow the VEBA concept.

Has anyone looked into this issue or have any thoughts or concerns? Thanks!

[Guest Rae Posey]

I will be happy to answer any questions you have on HRA's.

You may or may not need HRA's, according to your demographics and claims history.

Also, there is really no need to have a VEBA and fund the accounts up front. Our in house legal counsel would be happy to discuss this in detail with you in relation to your company in particular. We haven't ever had anyone actually request that the accounts be funded through a VEBA, although it is an option. Our clients typically opt to list the accounts as an unfunded liability.

For more information, please see our press release on benefitslink dated today, Jan 22. My company specializes in HRA's and we offer the easiest plan to implement in the market today. Also, it is very inexpensive to administer and return on investment can be quite substantial. You may contact us at 1-877-467-2758 or direct at 205-397-8310. Or visit us on the web at www.msaplus.com.