The HRA plan document you need and where to find it

One of the major benefits of using an HRA plan for your staff’s health coverage is how straightforward it can be. Your monthly costs are fixed, you aren’t under a major health insurance company’s thumb, and you don’t have to worry about ACA guidelines. But that doesn't mean you are in the clear when it comes to paperwork. Here's what to know about HRA plan documents.

There's obviously some necessary paperwork you must create before your HRA plan can actually begin. Good news is, there are only two main documents to worry about.

Here's what to know. 

HRA Plan document: the 101

Your HRA Plan Document should include the following things: 

Legal Agreement

This agreement is for the employer and establishes the HRA. It should include:

• Responsibilities that fall under the named fiduciaries and plan administrators
• Claims Procedures
• Small business HRA eligibility requirements
• Effective dates of participation
• Procedure for plan termination and for any amendments to the plan
• HIPAA privacy officers
• Rules that relate to the use of protected health information
• Information on federal mandates
• How your HRA plan is funded and how you will make payments

HRA plan document summary

This document is the written notice for your staff that explains the HRA benefits and how it works. The employee notice must contain the following:

• The allowed benefit amount per employee
• HRA start date for the employee
• A statement that the eligible employee must inform any Marketplace to which the employee applies for advance payment of the premium tax credit of the amount of the provided benefit
• A statement that the amount of the provided benefit may affect the eligibility for and the amount of the premium tax credit.
• A statement informing the employee that they should retain the written notice because it may be necessary to calculate the premium tax credit on the employee’s individual income tax return.
• A statement that if the employee does not have minimum essential coverage for any month, then the employee may be penalized under the Affordable Care Act. However, this penalty is set to be eliminated under the ACA in 2019.

Take Command as your HRA administrator 

While there are only these two documents you need to create, it doesn’t mean the information you must provide is simple. And anytime you put forth legal documents, you want to ensure the information given is accurate. That’s where Take Command Health's platform can help. 

By letting Take Command's HRA administration do the legwork for you, we take care of monthly reporting, onboarding employees, compliance, and your tax reporting needs. We'll even review employees insurance coverage and help them purchase a plan if they are without.

If you want to dig deeper into HRA requirements and the necessary paperwork, check out our new QSEHRA Guide, ICHRA Guide, HRA Guide or chat with our experts directly on our website.