What Is The HMRA® Employer Cost-Containment Program?
The Health Matching Reimbursement Account (HMRA) cost-containment program represents the missing piece in group plan design for employers to not only contain their health care cost increases but to actually experience dramatic savings over time. The HMRA Program is a cost-containment tool and funding mechanism that reimburses employers on first-dollar, employee medical expenses in a self-funded plan design or pays for first-dollar, employee HRA costs in a fully-insured plan design.
How It Works
The HMRA program is an effective, cost-containment tool in any employer plan design. It consists of a monthly, employer contribution on behalf of their participating group members that can be fully tax deductible as a Sec. 162 business expense. This monthly, employer contribution is allocated towards participating group members into separated, HMRA group member account balances that the employer owns on their group members’ behalves. These HMRA account balances are awarded a first-dollar, medical benefit crediting that grows every month following each employer contribution. Employers will receive up to $2 in benefits or more to be used as medical reserves inside of their group members’ HMRA account balances for every $1 contributed each month as the program progresses.
In a self-funded arrangement, the HMRA program reimburses employers in full for all first-dollar, member medical claims, irrespective of employee cost sharing, up to that group member’s HMRA account balance at the time of the claim. The HMRA program can seamlessly be integrated into a self-funded employer’s plan design through a monthly enrollment and claims file feed.
The HMRA is also the ideal complement to any employer’s HRA program because the HMRA Program and its powerful, medical benefit crediting can be used as a funding vehicle for the employer’s HRA program itself. The HMRA can be implemented by employers to fund a separate, Section 105 HRA plan design to pay for any of their 213(d) medical expenses up to the group member’s current account balance at the time of the claim.