Does ER Reimbursement of Deductible = HRA?

[namealreadyinuse]

Does an arrangement where the employer reimburses employees for their deductible need a plan document. It is essentially an HRA, correct? Or is it ok to just have an arrangement to do this without a more detailed HRA document?

[Guest ehs]

Sounds like an HRA to me: 100% employer, no cash out, specific purpose (i.e., ee doesn't get to choose how it is used). If I were an attorney, I would say absolutely, you need a written Plan. As a TPA, I'd say 'put it in writing'.

[GBurns]

It seems like simple section 105 Medical Expense Reimbursement Plan which have been around for decades before HRAs were conceived. It has no rollover feature etc and so does not need to be an HRA, which is also a section 105 MERP but with a rollover and no employee contributions etc.

Treas Regs 1.105-11(b)(i) requires a separate written plan.

[namealreadyinuse]

Thanks!

Since both HRAs and "MERPs" are ERISA, is there any significance to the distinction outside of the 2002 IRS guidance for HRAs (i.e., why not just use an HRA w/o rollover for arrangement to reimburse deductible)?

[GBurns]

I do not think that the employer would be reimbursing the deductible, per se. The employer would probably be reimbursing any deductible that is incurred. In that case there is no need for a rollover since the reimbursement would have been made to reimburse an actual expense and the employee would be getting the money in hand. There would be nothing left anywhere to rollover.

Also since only incurred expenses would be reimbursed there is no need for pre-funding and no need for any sort of holding account.

It would be reimbursement for eligible expenses incurred. A simple MERP.