HRA Question

debboyer

Help! I have question regarding HRA's and I seem to keep getting conflicting information. Our company is looking at an HRA. We would like to offer this ONLY to employees who opt to participate in a Consumer Value Health plan and not the traditional PPO. Can we segregate which employees can receive the HRA or does it have to be given to all employees regardless of the insurance plan they select?

I appreciate your help!

mbliek

I had a similar question regarding our FSA plan. We wanted to give 2-4 employees a larger company contribution into thier FSA plan. After talking to EBS-RMSCO rep I found we could not because our reasons/criteria were discriminatory in nature. I was told that you must establish a criteria for participation into the FSA(not financial or age based) and apply is equally to all employees that fall into that critera.

Hope this helps.

ACU Frank

But it [B]may[/B] be okay to do what Parothead wants to do if all employees have the ability to choose the plan with the 'best' HRA treatment. It isn't discriminatory that way.

debboyer

Thanks for your input I wanted to update you on the results. We have set up an HRA and were able to tie the HRA to only one of our Insurance selections. We were not looking to provide different levels of payments to employees but to only pay employees who selected our Consumer Value Medical Plan.

Health care choices for us were slim to none this year. This is my first time in 20+ years that we really had no choices.