How will I be billed?
One invoice from CDPHP will include medical benefits, as well as any funding accounts.
Can an employee participate in more than one funding account at the same time?
An employee who is covered by an HRA may also participate in a health/ dependent care FSA.
An employee who is covered by a health/ dependent care FSA may also participate in an HRA.
A traditional, general-purpose health FSA or HRA will make an individual ineligible for an HSA.
What is the process for submitting claims?
To protect you and ensure that funds are being used appropriately and as allowed by law, CDPHP verifies reimbursed expenses through the substantiation process. For purchases made with the debit card, a substantiation form may be requested, along with proof of payment. The CDPHP claims integration feature makes this process even simpler by paying providers directly, out of the HRA and on your employee’s behalf.
Will employees receive debit cards?
Depending on the plan design that you choose, your employees may receive a debit card that can be used to pay for certain eligible expenses, as determined by your plan and IRS guidelines. If you are unsure if your employees will be receiving a debit card, contact your account representative.
Whenever a debit card is used, participants should save their receipts for documentation purposes.
Do non-discrimination rules apply?
In general, HRAs cannot discriminate in favor of highly compensated employees (HCEs) with respect to eligibility or benefits. Speak with your legal or tax advisor for further guidance.
Can an owner participate?
Self-employed individuals, including partners in a partnership and more-than-2% shareholders in an S corporation, cannot participate on a tax-favored basis. Speak with your legal or tax advisor for further guidance.
Is a domestic partner covered under an HRA?
The employer funds the HRA on a pre-tax basis, and employees receive pre-tax reimbursements. If the domestic partner is a tax dependent, they are eligible for this pretax reimbursement. However, once a “non tax-dependent” domestic partner is enrolled, the benefits for that domestic partner are now taxable. The employer is responsible for receiving and maintaining records of tax certification and for any tax reporting.
Does COBRA apply to an HRA?
HRAs are considered employer-sponsored health plans and are therefore subject to all federal regulations that apply to ERISA plans, including COBRA. An employee is not permitted to elect the HRA benefit alone. The HRA may only be elected as long as the individual continues the CDPHP medical plan through COBRA.
CDPHP does not administer COBRA. Therefore, it is the employer’s responsibility to charge a COBRA HRA premium.
What resources are available to help me manage my group’s HRA?
You will have access to monthly reports online in the secure employer site, detailing enrollment, transaction history, enrollee account balances, and summary statements. You can also contact your broker or CDPHP representative to answer group-specific questions and concerns.