HRA Sofware

Health Reimbursement Arrangement Administration Software

A quality software package does more than administer an HRA. It should allow you to:

Administer multiple HRAs under one plan,
Administer both linked and unlinked HRAs under one plan,
Track medical expenses by dependent for each HRA,
Accrue employer contributions on a monthly or annual basis,
Administer co-pays, co-insurance, and tiers for each option under an HRA

Ask if you can set the following plan design variables for the plan

Timing of employer contributions
Give you choice of (a) allowing or (b) not allowing reimbursements for expenses incurred in previous years
Set ordering of FSA/HRA
Availability of spend-down option (events covered, amount allowed and coverage period for each event)
Minimum reimbursement amount

Ask if you can set the following plan design variables for linked and unlinked HRAs.

Period of time allowed for submitting claims
Ordering of HRAs and FSAs (which is payor of last resort)

Ask if you can set the following plan design variables for each HRA.

Eligibility and participation requirements
Deductibles, copays, coinsurance, and tiers
Eligible medical expenses
Eligible dependents
Reimbursement cap
Permission for carry-over, the percentage or amount of unused funds allowed, cap on carry-over

To make evaluating administration systems easier, you can download this Checklist for Evaluating HRA Administration Systems.

What do I look for in Plan Documents?

You need a comprehensive set of Plan Documents that are fully integrated with the software system.

The plan documents should include the Plan Document, Summary Plan Description, and Adoption Agreement, and be able to:

Set up a plan with multiple HRAs, both linked and unlinked, with separate requirements and parameters for each HRA,
Comply with ERISA, COBRA, HIPAA, FMLA, USERRA and other regulations,
Contain the applicable nondiscrimination rules, and
Explain the plan design variables.

Why is a Plan Proposal Utility important?

Designing the right plan is essential to the success of an HRA. Without the right options and pricing modules, the HRA will create a negative environment and will not encourage savings, but encourage expenses. This will cause the HRA to fail, your client to lose a very beneficial opportunity, and your capability to be diminished in the eyes of your client.

The DataPath proposal system allows you to input the employer's current plan design and create one or more plan designs for HRAs. It will then automatically create an expected claims budget and other critical elements of the plan such as proposed rates and deductible options. This utility takes the guess work out of the proposal process and creates confidence where there