These 3 basic HRA Plan designs are best suited for the 2+ employee group and integrated with employer sponsored group health insurance. The Limited HRA Plan could be a stand-alone design if it only covers Excepted Benefits.
Best suited for 2+ employee groups with employer sponsored group health insurance.
The Comprehensive HRA can be designed to pick up most or all out-of-pocket expenses such as copays, coinsurance, deductibles, dental, vision, Rx, etc. and more. The Comprehensive HRA Plan must be integrated with ACA qualified group health insurance coverage.
Best suited for 2+ employee groups with or without group health insurance depending on benefit design.
A Limited HRA will cover only specified out-of-pocket medical expenses such as prescriptions, dental, vision etc. and can be restricted to cover just one medical expense
Best suited for 2+ employee groups with group health insurance.
The Deductible Gap HRA Plan works with a much larger high-deductible health insurance plan (HDHP). Example: The employer chooses a $5,000 deductible. The employee is responsible for the first $1,000 of deductible expenses and the HRA covers the remaining $4,000. The employer saves by reducing its annual group health premium while the HRA cushions a large jump in deductible for employees. On average, about 20% of employees will have an expense that qualifies for deductible gap reimbursement.
This short video (1:09) shows how it works: How to Save on Group Health Premiums
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