Health reimbursement arrangements are employer-funded accounts that reimburse employees for qualified medical expenses they’ve paid for out-of-pocket. Employers set up an HRA, determine the amount of money available to each employee for a coverage period and establish which expenses the funds can be used for. But there’s a lot more to understand when it comes to HRAs , like: what are the benefits; who is eligible; how contributions and distributions are made; and what medical expenses are eligible? Download our recent Know Your Benefits articles Understanding an HRA and Examples of Eligible Expenses to get all the answers and more. For more information about  employee benefits, our services and products , contact HBS by  email  or call 800.388.1963. These Know Your Benefits articles are provided by HANYS Benefit Services and are to be used for informational use only and should not be construed as professional advice. © 2022 Zywave, Inc. All rights reserved.

  What are HRAs? Health reimbursement arrangements are employer-funded programs that reimburse employees for certain medical expenses. Typically, an employer can only offer an HRA to employees with a group health plan, often a high-deductible health plan. Your employer determines the amount of money available in the HRA, which is typically an amount less than your annual health plan deductible. Why an HRA? HRAs provide a tax-free, employer-funded amount of money for healthcare expenses. These arrangements are a great way to pay for out-of-pocket qualified medical expenses while working to meet your plan deductible. There are many advantages to HRAs including: tax savings; out-of-pocket expense reduction; and accrued balance. How do HRAs work? You can use your HRA funds to get reimbursed for your own eligible medical expenses, as well as your spouse’s and dependents’ eligible medical expenses. Eligible medical expenses are unreimbursed medical care expenses, as defined under Section...

Combating Rising Benefits Costs During Periods of High Inflation The U.S. inflation rate has increased by 9.1% over the last year, according to the Bureau of Labor Statistics. This has led to significant price increases across various consumer goods and employee benefits such as health insurance. In fact, health insurance costs have already risen for one-third of U.S. employees in the last year, according to a report from the Employee Benefit Research Institute. This increase in costs presents challenges for employers facing a difficult hiring market. Luckily, employers may be able to mitigate increasing benefits costs without shifting the burden to employees, thus remaining attractive to current and prospective employees. Consider the following strategies: Eliminate underutilized benefits and reallocate resources toward more expensive benefits. Offer a wellness program or similar benefits to promote and achieve a healthy workforce.  Encourage telemedicine benefits to help employ...

Asset prices faced substantial pressure in the second quarter as investors began to feel the pain of high inflation and hawkish monetary policy. Within the US, the S&P 500 fell 16.60% in Q2 and finished down 19.96% year to date. Inflation, which was previously expected to peak in the spring, unexpectedly rose in May. The Federal Reserve appears to be dedicated to its plan to lower inflation and restore price stability by raising interest rates to levels not seen in almost 30 years. Inflation continues to pressure global economies, leading to declines in asset prices worldwide. While the second quarter was undoubtedly difficult, investors must remember the importance of long-term investing and avoid making rash decisions, even amid extreme market volatility. Read the  Retirement Market Recap  to learn more about the Q2 market performance. If you have questions about  retirement plan services or would like to begin talking to a retirement plan advisor, please get in to...

  Each quarter, the Attraction and Retention Newsletter offers statistics about the employment market, suggestions on securing top talent and insight to attract and retain workers. The third quarter edition explores: employee quits remain high while job growth continues; attracting and retaining employees during the great reshuffle; and developing an employee retention strategy. Current trends indicate that while workers are available, the demand for talent remains high and employers continue to face challenges retaining employees. Many factors influence the high quit rate, including the ongoing pandemic, inflation and a strong market for candidates. While the labor market remains competitive, experts largely expect talent challenges to continue. As such, employers should monitor employment trends to stay informed on the evolving market. Download your copy of the newsletter today to stay up to date. For more information about  employee benefits, our services and products , ...