The Health Matching Reimbursement Account is an employer health care funding mechanism and HIPAA (Health Insurance Portability and Accountability Act of 1996) compliant, medical reimbursement account and cost-containment program offered exclusively by National Prosperity Health Matching Services. The HMRA program consists of a defined, monthly, employer contribution on behalf of their participating group members. This monthly, employer contribution is fully tax deductible as a business expense and is allocated towards participating group members and families into their respective, HMRA account balances.
Step 1: Employer HMRA Contribution: The employer is the owner of the HMRA program and makes a defined, monthly contribution to build the medical reserve account balances for each participating group member. This contribution is immediately tax deductible. The HMRA pre-funds employee claims ahead of time into reimbursement accounts that earn a medical benefit crediting that grows following each monthly, employer contribution. With this pre-funding of claims, the employer will be saving up to 30% or more on their most frequent, first-dollar, member claim obligations when they occur, and these savings are post-claim adjudication. The employer will be receiving additional reimbursement funds flowing into the company that would not have been possible without the HMRA program in place. These medical reserves will serve to help reduce an employer’s contingent liabilities.
Step 2: Employee Incurs Medical Claim: The HMRA monthly account crediting rate promotes a rapid growth of medical reserve funds available to be reimbursed tax-free to the employer when their group members incur medical expenses.
Step 3: HMRA First-Dollar Reimbursements: The HMRA will reimburse the full, first-dollar claim cost up to the filing group member’s HMRA account balance at the time of the claim back to the employer tax-free, regardless of employee cost-sharing in the plan design.
Step 4: Employer Earns Medical Reserves For: Employers can then take these tax-free HMRA reimbursements and use them tax-free to reimburse their employees and group members in order to help fund HRA, HSA or wellness initiative programs as well as to reimburse employees directly on any of their 213(d) or other medical expenses as determined by the employer’s HMRA ASO (Administrative Services Only) contract. The HMRA is the ideal complement to any employer’s HRA program because the HMRA reimbursements can be used tax free to help fund the HRA program itself. Employees can now receive enhanced benefits from the employer through the HMRA reimbursements. It can also create opportunities for richer, employee health plans and reduced cost-sharing obligations because of the immense medical reserves that employers build with the HMRA program.