HRA Claim Reimbursement Methods

[Guest BeneGal]

In setting up an HRA with a health plan ($2000 deductible) we want to know if the following two scenarios are acceptable.

1. Set up the HRA for $1000 but it can only begin paying after the employee has expensed THEIR $1000 toward the $2000 deductible. The ee would have to show proof of the first $1000 being applied to their deductible then, claims after that could be submitted for reimbursement up to the $1000 HRA amount.

2. Set up the HRA to pay 50% of the employee's deductible which would again be $1000 but pay it out 50% at a time meaning... ee sends a claim for $300 the HRA reimburses $150 of that and the HRA keeps reimbursing 50% of all claims submitted until it pays out a total of $1000.

Can an HRA be set up with these stipulations? Is it violating anything? Seems that in both cases the HRA is still making available the $1000 it is designed to provide (in this case).

:confused: :confused: :confused: :confused: :confused: