Posts Tagged ‘Reimbursement’
Fiscal and Policy Analyst Aaron Edwards discusses the LAO report “The 2013-14 Budget: Maximizing Federal Reimbursement for Parolee Mental Health Care.” Histo…
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(PRWEB) August 07, 2012
Zane Benefits, which provides businesses with flexible and comprehensive alternatives to traditional employer health benefits, today published information about Medical Reimbursement Accounts.
Medical Reimbursement Accounts (MRAs) are IRS-approved plans wherein an employer reimburses an employee, their spouses, and dependents for medical expenses. Because the reimbursement occurs pre-tax via payroll, employees and employers often save up to 50% in combined taxes on the cost of medical expenses.
READ THE COMPLETE GUIDE TO MEDICAL REIMBURSEMENT ACCOUNTS HERE
MRAs give employers greater control over monthly health benefits costs, and give employees more choice in their health care coverage. With an MRA, the employer sets their own parameters, including:
Which expenses and services are covered
Maximum contribution amounts
What happens to unused contributions
MRAs must be funded solely by the employer, and cannot be funded by the employee through salary deductions. MRAs are not subject to the same plan design requirements that apply to Flexible Spending Accounts and Section 125 cafeteria plans.
MRAs by Other Names
The term “Medical Reimbursement Account” is synonymous with many other terms, and can be used interchangeably with the following:
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(PRWEB) July 17, 2012
Zane Benefits, which provides businesses with comprehensive and flexible health benefits alternatives, today published ten frequently asked questions that outline common health reimbursement account rules.
A Health Reimbursement Account (HRA), also known as a health reimbursement arrangement, is an IRS approved, tax advantaged, health benefit plan that reimburses employees for out of pocket medical expenses and individual health insurance premiums. The HRA is 100% funded by your employer. The terms of these arrangements can provide first dollar medical coverage until the funds are exhausted or insurance coverage kicks in. The contribution amount per employee is set by the employer, and the employer determines what the funds can be used to cover.
HRA FAQs – Health Reimbursement Account Rules
1. Do I have to have health insurance to have a health reimbursement account (HRA)?
HRAs are usually provided by employers to complement a higher-deductible health plan (HDHP), but can be paired with any type of health plan or offered alone. There is no rule requiring you to have health insurance in order to have a health reimbursement account.
2. Who owns the HRA?
According to IRS rules, your employer.
3. Who can put money in my HRA?
According to IRS rules, HRAs are fully owned and funded by the employer.
4. Does the money in my HRA earn interest?
Typically, no. Under most HRA plan rules, the accounts arent individually owned bank accounts that are eligible to earn interest.
5. What is an eligible health care expense for an HRA?
Eligible expenses under an HRA plan are determined by your employer and might include
Health insurance premiums
Health insurance deductibles
Coinsurance and co-pays
Other expenses included in IRS Publication 502Medical and Dental Expenses as eligible or qualified expenses
Eligible expenses must be incurred by the employee and/or eligible members of the employees family, and take place within the benefit plan year.
6. How much can be contributed to my health reimbursement account?
The amount contributed to your HRA is up to your employer.
7. What is the maximum reimbursement amount from my HRA?
The health reimbursement account contribution rules are determined by your employer. Most plans will reimburse eligible expenses up to the full available balance in your HRA. If your plan is based on an accrual, you’ll only be reimbursed the amount that you’ve earned in the plan.
8. What happens to the money in my HRA if I leave my job or retire?
This health reimbursement account rule is up to your employer. Most often, the unused money stays with the company when you terminate employment.
9. Does the money I have in my HRA roll over from year to year?
This health reimbursement account rule is up to your employer.
10. Can I use the money in my HRA to pay for my family’s medical expenses?
Yes. The money in your HRA can be used to pay for eligible medical expenses of any family member who qualifies as a dependent on your tax return. However, the dependent must be covered by your HRA.
About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zanes platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice.
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A step by step guide to learning the basics of Medical Billing, Coding, and Reimbursement. This is a fast-paced, ever-changing field. Learn how to run a business from home. Be your own boss. Become an entrepreneur. Understand what the CPT, ICD-9, and HCPCS manuals are and how to use them. Understand the difference between professional fees and technical fees. Fill out a HCFA-1500 form for a doctor’s office, and a UB-92, or UB-04 for facilities and hospitals.
In the billing business since 1981, Lori has spent nearly 25 years both working and teaching the medical billing and coding fields, with over 10 years of that being self-employed. She built her home medical billing service from the ground up, having custom software written and implemented to the standards she set for the collection process in her small business. Now, she’s sharing her secrets and tips for making a successful business run from your home too.
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Understanding Health Insurance, Tenth Edition is fully updated to the latest code sets, guidelines, and claim forms to provide you with the most essential and up-to-date knowledge on billing and reimbursement. With Understanding Health Insurance, Tenth Edition, you will learn about managed health care, legal and regulatory issues, coding systems, reimbursement methods, coding for medical necessity, and common health insurance plans. Exercises in each chapter provide plenty of practice for learning how to bill and reimburse, and the accompanying workbook provides more application-based assignments for each chapter as well as additional case studies to reinforce your knowledge. The text includes free software that allows you to test your knowledge.
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(PRWEB) May 29, 2012
HRA vs. HSA
Which is better: A Health Reimbursement Arrangement (HRA) or a Health Savings Account (HSA)?
The answer depends on what a business is trying to accomplish. For most businesses, HRAs are Superior to HSAs
What is a Health Reimbursement Arrangement (HRA)?
A Health Reimbursement Arrangement, or HRA, is notional account that employers use to reimburse employees healthcare expenses. Funds do not accumulate in a separate account; rather, employers pay only after their employees incur expenses.
What is a Health Savings Account (HSA)?
A Health Savings Account, or HSA, is a financial account established by an individual to pay for qualified medical expenses. HSAs must be linked with a qualified high-deductible health insurance plan, and anyone can contribute to it.
(1) HRA vs HSA: Which One is Right for Your Business?
Several characteristics make HRAs superior for employers, while still benefiting employees. HSAs generally favor employees but are more costly to employers. Here are key similarities and differences you should remember:
(2) HRA vs HSA: Similarities
Employer contributions to both HRAs and HSAs are tax-deductible. Employees arent taxed on these contributions: Employer HRA contributions are excluded from wages, while employees deduct HSA contributions on their personal tax returns.
Both HRAs and HSAs encourage employee “consumerism,” helping them pay attention to healthcare costs and use healthcare more prudently. Theyre rewarded by having unused funds roll forward each year.
Generally, HRAs are better for employers while still very beneficial for employees. To make the right decision, however, you need to understand the key differences between HRAs and HSAs.
(3) HRA vs HSA: Important Differences
The differences between HRAs and HSAs relate to control, flexibility, and simplicity.
Control. Employers have more control over costs with HRAs. Only employers may contribute to HRAs and use these funds to reimburse actual expenses; with HSAs contributions are made whether or not expenses are incurred. Employers also have more freedom to select expenses covered by HRAs. Employees forfeit unused HRA funds when they change jobs but keep all unused HSA employer contributions.
Flexibility. With HRAs, employers can adjust contributions by class of employee (e.g. management, IT, clerical). HRAs can be used with any type of health insuranceor none at all. Additionally, HRAs are easier to use in conjunction with other employee benefits like cafeteria plans and FSAs.
Simplicity. HRAs are easier to understand, administer and manage. Employees dont have to store receipts for multiple years, worry about tax deductions or pay monthly administrative fees to their bank or broker.
HEALTH REIMBURSEMENT ARRANGEMENT (HRA)
Employers pay when expense is incurred, and only to extent of contributions
Funds stay with the employer when the employee leaves the company.
Only employers may contribute.
Employer selects maximum contribution.
No restrictions on health insurance.
Contributions vary by class of employee.
May be used with FSA with few restrictions.
Funds paid from company bank account.
Employee submits receipts for payment.
Rules driven by broad IRS guidelines and company plan design.
HEALTH SAVINGS ACCOUNT (HSA)
Employer pays full amount at beginning of year, whether or not expenses are incurred.
Funds go with the employee when he/she leaves the company.
Employers, employees or third parties may contribute.
IRS determines maximum contribution.
Must be paired with qualified high deductible plan.
All employees receive same employer contribution.
May be used only with restricted, limited-purpose FSA.
Employee sets up account with bank or brokerage and has separate policy with insurance company.
Employee manages account and submits expenses for payment.
Complex IRS regulations govern expenses, funding, participation and fiduciary requirements.
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The best-in-class HRA software platforms provide the flexibility to create and administer separate employee classes, choose what expenses youll cover, control how much youll pay and accommodate different health plans and carriers. It lets you create electronic plan documents and communicate your new plan. It also ensures your plan will be fully compliant with all regulations.
HRAs are easier to understand, administer and manage. Employees dont have to store receipts for multiple years, worry about tax deductions or pay monthly administrative fees to their bank or broker.
With HRAs, employers can adjust contributions by class of employee (e.g. management, IT, clerical). HRAs can be used with any type of health insuranceor none at all. Additionally, HRAs are easier to use in conjunction with other employee benefits like cafeteria plans and FSAs.
About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zanes platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice. Learn more at http://www.zanebenefits.com.
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20 percent to 40 percent. and the elimination of lifetime medical reimbursement limits.
There are, of course, problems – as there are with any health care system. I’ve gone on at length in other posts about the problems with the fee-for-service reimbursement system, long-term care, and problems associated with the …
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Happy Birthday, Medicare — the Most Popular Kid on the Block …
The national media are noticing that Koch Industries is among the 2000 groups that have been approved to seek federal reimbursement for the health claims of “early retirees.” The program, which is part of the federal health care law, …