How The HMRA Works In Four Easy Steps:
For Self/Level Funded And Dental/Vision Groups
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 Health Matching Account 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 Monthly Contribution: The employer is the owner of the HMRA program and makes a defined, monthly contribution, which is allocated to build individual, HMRA account balances for each participating group member in the health plan. This contribution is tax deductible as a Sec. 162 business expense. The HMRA pre-funds plan claims ahead of time into separated, HMRA account balances that all earn a medical benefit crediting for the employer that grows following each monthly, employer contribution. Through this powerful, HMRA Program account crediting, the employer will be receiving additional reimbursement funds flowing into the company that would not have been possible without the HMRA program in place when their group members incur medical claims.
Step 2: Medical Claim Incurred By Plan: The HMRA monthly account crediting rate promotes a rapid growth of medical reserve funds available to be reimbursed 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. The HMRA Program will cover the participating group membes up to their current HMRA account balance at the time of the claim. If, for example, an employee had a $500 HMRA account balance and a $1,000 medical expense, the HMRA would cover the first $500 of that claim. The HMRA Helix administrative system will simply use a monthly enrollment and claims file feed from the employer to automatically determine what HMRA reimbursements are owed to the employer on a monthly basis.
Step 4: Employer Earns Medical Reserves: The medical reserves that are growing each month in the employees’ HMRA account balances that are not filing medical claims will serve to help reduce an employer’s contingent liabilities.
How The HMRA Works In Four Easy Steps:
For HMRA/HRA Plan Design
Step 1: Employer HMRA Monthly Contribution: The employer is the owner of the HMRA program and makes a defined, monthly contribution, which is allocated to build individual, HRA account balances for each participating group member. This contribution is tax deductible as a Sec. 162 business expense. The HMRA pre-funds employee claims ahead of time into HRA accounts that earn a medical benefit crediting for the employer that grows following each monthly, employer contribution. The medical reserves that are allocated each month into the group members’ HRA account balances that are not filing medical claims will serve to help reduce an employer’s future, contingent liabilities through the powerful, HMRA, monthly account crediting that the employer’s HRA program is receiving each month.
Step 2: Medical Claim Incurred By Plan: The HMRA monthly account crediting rate promotes a rapid growth of medical reserve funds available to be used by the employer to fund a separate, Section 105 HRA plan design for their group members through a Plan Document. This will authorize the employer to access their HMRA benefits for their employees’ existing HRA program by issuing the Health Matching Account Services HMRA/HRA Visa® Prepaid Card that employees can swipe at the point of service to pay for any of their 213(d) medical expenses.
Step 3: HRA Claim Payment: Each HRA account will pay for the full, first-dollar, 213(d) claim cost through the Health Matching Account Services HRA Medical Benefits Visa® Prepaid Card up to that member’s HMRA account balance at the time of the claim. If, for example, an employee had a $500 HMRA account balance and incurred a $1,000 medical expense, the Health Matching Account Services HRA Medical Benefits Visa® Prepaid card would pay for the first $500 of that claim.
Step 4: Employer Earns Medical Reserves For Future Costs: The HMRA is the ideal complement to any employer’s HRA program because the HMRA benefits can be used to help fund the HRA program itself. Employers can now provide their group members with enhanced benefits through the HMRA funding program. The HMRA can also create opportunities for richer, employee health plans and reduce cost-sharing obligations. The HRA may not be used for first-dollar benefits when group members are using an HSA (Health Savings Account) in conjunction with a High Deductible Health Plan (HDHP). However, the HRA may be used after the HSA deductible has been met.
The Health Matching Account Services HMRA/HRA Visa® Prepaid Card is issued by The Bancorp Bank pursuant to a license from the Visa® U.S.A Inc. The Bancorp Bank; Member FDIC. Card may not be used everywhere Visa® debit cards are accepted. See Cardholder Agreement for list of eligible goods, services and merchants. Health Matching Reimbursement Accounts are a patent-protected product. Claim cost and frequency may vary by group. Charges and fees may vary by group. This is not an illustration or a formal quote. Ask your broker for a formal quote.
