What is a Health Reimbursement Arrangement (HRA)?
An employer determines the type of HRA plan design that best aligns with their needs.
They set a contribution limit based on their unique plan design criteria, such as coverage levels.
The employer determines which expenses (within IRS guidelines) will be reimbursable through their plan.
Employees participating in the HRA submit claims that are incurred or paid out under the plan design.
HRAs are tax-advantaged, exempt from both payroll taxes and income taxes.
Our Difference
WEX continues to make investments that support even the most complex HRA structures, including features such as intelligent carryover and the ability to offer a single, stacked debit card to participants who participate in both a FSA and HRA (that pulls from the right purse, at the right percentage).
Health Reimbursement Arrangements (HRAs) from WEX
From simple to complex and integrated to retirement, we can help you create and offer an HRA that works best for your employee population.
Integrated HRAs
These HRAs are paired with a high-deductible or a traditional PPO health plan to help cover out of pocket expenses related to the health plan deductible or coinsurance.
Description
Predetermined dollar amounts automatically provided to participants on a defined schedule.
WEX Advantage
Automated contribution processing, self-service functionality, and stacked debit card (where your participants only need one debit card to access their health and commuter benefits) make this a seamless solution for participants. Expenses can be easily customized to meet your plan designs!
Description
Contribution amounts and frequency vary by participant.
WEX Advantage
Optional employer self-service upload of contribution files, admin file contribution processing across employers, debit card, mobile, and online claim filing. Expenses can be easily customized to meet your plan designs!
Description
Participants have an upfront amount that they have to incur prior to the HRA reimbursement of claims. Includes support for “donut hole” or “bridge” plans.
WEX Advantage
Automated tracking of threshold amounts (for multiple coverage levels) of shared participant responsibility. We also offer easy claim filing options online and via mobile app. This HRA also works with our debit card–access to funds can be restricted until the deductible is met.
Description
The employer pays a portion of each expense that is filed against the HRA up to a max dollar amount. Multiple tiers of coinsurance can be defined.
WEX Advantage
Reimbursement of expense automatically to the appropriate tier percentage level. We also offer easy claim filing options online and via mobile app. This HRA also works with our debit card and can be set up for % authorization so that the coinsurance HRA can be stacked with an FSA to cover the full expense amount.
Description
Combines both threshold and coinsurance concepts where a participant has an upfront out of pocket amount they have to incur prior to expenses being reimbursed at a defined percentage after it is met. Works with multiple coinsurance tiers.
WEX Advantage
Support for a truly integrated HRA design, providing the ability to work in conjunction with the group health plan to provide additional coverage on expenses. Automated claim filing of carrier files facilities payment automatically to providers with the added ability to pay providers electronically, using our extensive provider payment network.
Non-Integrated HRAs
These “stand-alone” HRAs are offered outside of the traditional group health plan as supplemental benefits or in some specific cases, instead of traditional group insurance.
Description
A customized benefit that employers provide as a reward for or to encourage healthy employee behaviors.
WEX Advantage
Flexible variable contribution plan design, paired with file and web service integration capabilities make it simple to connect to any wellness benefit vendor or use our extensive plan design library to create your own unique benefit. The ability to define custom networks on our stacked debit card (where your participants only need one debit card to access their health and commuter benefits) can create a unique and easily accessible benefit to participants.
Description
An Individual Coverage HRA allows all businesses, regardless of size, to reimburse or facilitate payment on behalf of employees, for their individual health insurance premiums, as well as other qualified healthcare expenses. Employees offered an ICHRA cannot also be offered a traditional group health plan.
WEX Advantage
Our solution accommodates the setup and management of a custom ICHRA offering, including segmenting the offering by class, collecting the attestation of coverage from employees including limiting spend until it’s received, and the facilitation of payment for the premium — everything partners, employers, and employees need from start to finish.
Learn more.
Description
The Qualified Small Employer HRA is available to employers with less than 50 employees who do not offer a traditional group health plan to subsidize health care coverage or out of pocket medical expenses.
WEX Advantage
User-tested (and approved!) employer portal provides self-service capabilities to keep the small group administration light. We also offer participant-friendly features on the web and via mobile to cover the special aspects of a QSEHRA.
Description
An Excepted Benefit HRA provides employees who are eligible to participate in a traditional group plan with funds to cover insurance premiums consisting of solely excepted benefits such as dental and vision.
WEX Advantage
Participants can set up recurring reimbursements or payments to the carrier through the consumer portal to easily get reimbursed or make premium payments each month.
Retirement HRAs
These HRAs are employer-funded accounts designed to help retired employees pay for plan-eligible medical expenses during retirement. These can often live in an interest-bearing account or have an investment component.
Description
An RRA is an employer-funded account that accrues while you are an active employee to help pay for eligible medical expenses during retirement. Contributions often vary by participant and can be based on seniority or years of service.
WEX Advantage
Simple integration options for contribution processing and easy automatic access to funds in retirement via our stacked debit card (where your participants only need one debit card to access their health and commuter benefits).
Description
Sometimes called “multi-employer plans”, these are defined benefit (pension) plans that are part of a collective bargaining agreement. Employees earn a set amount of dollars based on a defined formula, taking into such attributes as years of service or number of hours worked.
WEX Advantage
View account balances from the consumer portal or mobile app to see accruals and access funds in retirement easily via our stacked debit card (where your participants only need one debit card to access their health and commuter benefits).
Description
A Voluntary Employee Beneficiary Association is an employer-funded, interest earning account where contributions are held in a trust on behalf of employees. Funds can be used for current or future eligible expenses.
WEX Advantage
Consolidation of benefits under a single umbrella. Full-service administration options for either or both reimbursement processing as well as trust and investment management.
Description
A 115 Trust is similar to a VEBA in that it is an employer-funded, interest earning account where contributions are held in a trust on behalf of employees. Funds can be used for current or future eligible expenses. 115 trusts are typically offered to public sector employees.
WEX Advantage
Consolidation of benefits under a single umbrella.
Full-service administration options for either or both reimbursement processing as well as trust and investment management.
WEX Simplifies HRAs for Everyone
From intelligent carryover for our partners, the option for employers to completely customize their offering, to one debit card, one online account, and one mobile app for participants to use for all their benefit accounts, WEX simplifies HRAs for everyone.
Why WEX?
Manage everything in one place
Create a benefit offering that works for your book of business and manage it all in ONE place (including FSA, HSA, HRA, commuter, COBRA, direct bill, and more).
Streamline and optimize your business.
Access innovative features such as Let’s Chat (an AI-driven chatbot), Benefit Analytics, and consulting services to drive efficiencies and grow your business.
Why WEX?
Create a better user experience.
90% of our clients chose us for their administration when looking for a better experience for themselves and their employees.
Trust us to reduce confusion.
In 2020, we grew our participant base by 23%, yet saw a decline in the number of participants contacting us for support.
Drive efficiencies by leveraging our integrations.
With 350+ payroll/HRIS/benefit administration partners and more than 225 insurance carriers.
Why WEX?
Simplify your workflow.
Our intuitive benefits platform allows you to view and update participant accounts, view reporting, and upload files in one place.
Drive efficiencies by leveraging our integrations.
With 350+ payroll/HRIS/benefit administration partners and more than 225 insurance carriers.
Create a consistent, user-friendly experience for your employees.
We’re talking one modern, user-friendly online account, one debit card for all their benefits (that they can add to their digital wallet and use with mobile pay), and one mobile app to easily track and manage their benefits even when they are on the go.
Why WEX?
Easily track and manage your HRA via mobile.
We manage almost all aspects of our lives from the palms of our hands. The WEX benefits mobile app was built with that in mind, and includes a consistent, simple, and modern experience. And when you’re using a desktop, you can expect the same user-friendly experience.
ONE debit card for your HRA … and all your other benefits.
Spend the funds in your HRA (and other benefit accounts) using your smart benefits debit card.
* Varies by HRA
Get help when you need it.
Question about your benefits? Contact our accountable and empathetic service experts.
Design Your Flexible, Custom Offering with HRAs from WEX
Count on us to help you create the flexible, custom HRA you need while also offering participants a simple, seamless experience so they can easily take advantage of their benefits account(s).
Design Your Custom HRA
Create an HRA that works for you.
Our technology gives you the ability to create a completely custom HRA based on what works best for you and your employees. From simple to complex plans, we make it possible (and make sure it stays within requirements).
Trust the experts to help you along the way.
Our technology gives you the ability to create a completely custom HRA based on what works best for you and your employees. From simple to complex plans, we make it possible (and make sure it stays within requirements).
Take advantage of intelligent carryover.
No more ‘short plan years.’ Our process allows HRA funds to be made available on day one of the current plan year, while simultaneously handling carryover funds from the previous year … in a single purse. This removes the burden of managing carryover from the partner, and creates a hassle-free experience for participants.
Simplify the Participant Experience
ONE debit card for all benefits accounts.
No matter what accounts a participant enrolls in (HSA, FSA, HRA, commuter benefits, or a combination), they only need ONE debit card because our technology can pull from the right account (at the right percentage) based on their purchase. Plus, participants can even add their debit card to their mobile wallet to take advantage of contactless payment options. *Varies by HRA
ONE online account to access health and commuter benefits.
No more jumping from screen to screen (and having to remember multiple logins) to keep track of multiple benefit accounts. With WEX, participants only need one online account to manage their health (HSA, FSA, HRA) and commuter benefits.
ONE mobile app to access their benefits on-the-go.
We manage almost all aspects of our lives from the palms of our hands. The WEX benefits mobile app was built with that in mind, and includes a consistent, simple, and modern experience. And when you’re using a desktop, you can expect the same user-friendly experience.
Want More Information?
Download our HRA handout, subscribe to our blog, and listen to our podcast.
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