BCBS HRA Plan Explained for Business Owners and Employees

A BCBS HRA plan is a type of health reimbursement arrangement that allows you to set aside pre-tax dollars for medical expenses. This plan is designed for businesses with fewer than 50 full-time employees.

BCBS HRA plans are not subject to the Affordable Care Act's (ACA) employer mandate, which means you don't have to offer traditional group health insurance to your employees. This can be a cost-effective option for small businesses.

To be eligible for a BCBS HRA plan, your business must meet certain requirements, such as having fewer than 50 full-time employees and not offering traditional group health insurance.

A BCBS HRA plan can help you save on healthcare costs and provide your employees with more flexibility in choosing their medical coverage.

The BCBS HRA plan is an option for employees who want to save on healthcare costs.

There are different types of HRAs, including QSEHRA and individual coverage HRA.

To determine the best HRA plan for you, you can use the HRA affordability tool.

You can also find an insurance plan with an HSA or HRA through eHealth, a licensed health insurance agency.

The Pelican HRA 1000 offers a range of benefits to help you manage your medical expenses. The plan includes $1,000 in annual employer contributions for employee-only plans and $2,000 for family plans in a health reimbursement arrangement.

This HRA can be used to offset deductibles and other out-of-pocket medical costs throughout the year. Members do not have direct access to the funds, but rather the out-of-pocket portion of a claim will be paid directly by Blue Cross Blue Shield of Louisiana from the member's account.

The plan's employer contribution to the HRA varies depending on the number of dependents you have, with $1,000 for employee-only plans and $2,000 for family plans.

Here's a breakdown of the plan's medical coverage:

Once you meet your deductible, you'll pay 40% of the allowable charge, plus 100% of the difference between the allowable charge and billed amount.

HSAs and HRAs are both popular healthcare benefit options, but they work in different ways and offer distinct advantages. An HSA, or Health Savings Account, is a personal savings account that allows you to set aside pre-tax dollars for medical expenses. These accounts are portable, meaning the funds follow you from employer to employer, and you can invest the funds for growth.

One key benefit of HSAs is that the funds can be used for any expenses, not just qualified medical expenses, once you reach 65. However, using the funds this way makes them taxable. HSAs work like debit cards and allow you to pay medical expenses with pre-tax dollars, which can sometimes be invested for growth.

HRAs, or Health Reimbursement Arrangements, are plans that let employees control how their health care dollars are spent. Employers fund the HRAs, and employees can use the funds to pay for covered health services. The funds in an HRA are tax-free for both the employer and the employee, and reimbursements are also tax-free.

Here are some key differences between HSAs and HRAs:

HRAs offer a multitude of benefits for both employers and employees. For employers, the flexibility HRAs provide is paramount, especially for smaller businesses that may face budget constraints when offering traditional health insurance plans. Employers have the latitude to tailor their HRA offerings, aligning them with their preferences and financial capabilities, thus ensuring a personalized approach to employee healthcare benefits.

One significant advantage of HRAs is that reimbursements are tax-free for both the employer and the employee. This reduces the financial burden on employers and makes healthcare more accessible for employees.

Eligibility for a BCBS HRA plan is typically employer-sponsored, meaning it's offered by your employer as part of their benefits package.

HRAs are primarily funded by the employer, with no personal contribution required from employees. This means you don't have to pay anything out of pocket to participate in the plan.

One key difference between HRAs and other healthcare plans is that you don't need to be enrolled in a high-deductible health plan (HDHP) to participate. This gives you more flexibility in choosing your health insurance.

Employers have full control over the HRA, including determining which expenses are eligible for reimbursement and setting contribution limits.

Here's a comparison of the key differences between HRAs and HSAs:

Overall, understanding the eligibility criteria for a BCBS HRA plan can help you make informed decisions about your healthcare benefits.

HRAs don't have a specific maximum contribution limit set by the IRS, giving employers flexibility in funding the plan.

Employers can choose to contribute varying amounts to HRAs for different employees, tailoring the benefit to meet specific business needs.

The entire contribution to HRAs comes from the employer, with no employee contributions allowed.

For HSAs, the IRS sets annual maximum contribution limits, which vary depending on whether you have self-only or family coverage under a high-deductible health plan (HDHP).

In 2024, the HSA contribution limits are $4,150 for self-only coverage and $7,300 for family coverage.

Individuals aged 55 and older can make additional "catch-up" contributions to their HSAs, up to $1,000 in 2024.

Both employers and employees can contribute to an HSA, but their contributions must not exceed the IRS-established limits.

Here's a quick summary of the contribution limits for HRAs and HSAs:

Exceeding the contribution limits for HSAs can result in tax penalties, so it's essential to monitor and manage your contributions to avoid excessive contributions.