Health Reimbursement Arrangement (HRA)
Administered by MMA for the Brethren in Christ Church Health Plan
As part of the Brethren in Christ Church Health Plan, congregations have the opportunity to provide financial assistance for medical expenses to pastors and church employees through a health reimbursement arrangement (HRA). An HRA is a simple way to make funds available to employees toward out-of-pocket medical costs.
How an HRA works
HRAs are designed to work alongside an employee’s health plan coverage, but are not part of the health plan. Here’s an example of how the HRA works within the context of the Brethren in Christ Church Health Plan:
- Pastor Jeff is enrolled in the BIC Church Health Plan. He submits a health claim that is processed by Highmark Blue Cross Blue Shield and then applied toward his health plan deductible.
- Once the claims process is completed, Highmark sends Pastor Jeff’s deductible information electronically to Everence.
- The claim amount that applies to Pastor Jeff’s deductible becomes an HRA reimbursement request, and is processed out of the employer’s HRA.
- Pastor Jeff will receive a reimbursement check.
Funding an HRA
HRA contributions are made by the congregation (employer) only. Employees may not add to the funding available. The funds in the HRA belong to the congregation (employer) until the employee requests a reimbursement.
No money is actually sent to Everence from the participating congregation or employer to pre-fund the accounts. In actuality, an HRA is a promise to reimburse an employee if he or she has an out-of-pocket medical expense that is applied to the deductible. On a monthly basis, the claims are processed for reimbursement from the HRA. The congregation will be notified of the total reimbursement amount for employees of their congregation. The church forwards the money electronically to fund the Everence account used to issue the HRA reimbursement checks.
HRA options available to participating churches
Brethren in Christ churches can choose from four HRA design options:
Option 1: The HRA reimburses 100 percent of any out-of-pocket deductible expense for each employee, up to the annual maximum amount provided in the HRA by the congregation for each employee.
The employee pays 0 percent of any out-of-pocket deductible expenses incurred, as long as they use a provider who is in their PPO network. Once their selected deductible amount is met, the health plan pays 100 percent of eligible in-network expenses.
The HRA reimburses 90 percent of any out-of-pocket deductible expense for each employee, up to the annual maximum amount provided in the HRA by the congregation for each employee.
The employee pays 10 percent of any out-of-pocket deductible expenses incurred, as long as they use a provider who is in their PPO network. Once their selected deductible amount is met, the health plan pays 100 percent of eligible in-network expenses.
The HRA reimburses 70 percent of any out-of-pocket deductible expense for each employee, up to the annual maximum amount provided in the HRA by the congregation for each employee.
The employee pays 30 percent of any out-of-pocket deductible expenses incurred with a provider who is in their PPO network. Once the selected deductible amount is met, the health plan will pay 100 percent of eligible in-network expenses.
The HRA reimburses 50 percent of any out-of-pocket deductible expense for each employee, up to the annual maximum amount provided in the HRA by the congregation for each employee.
The employee pays 50 percent of any out-of-pocket deductible expenses incurred with a provider who is in their PPO network. Once the selected deductible amount is met, the health plan will pay 100 percent of eligible in-network expenses.
Both HRA options are available with the following health plan deductibles:
- $2,000 individual (self-only) coverage and $4,000 family coverage.
- With “Option 1,” the HRA will reimburse 100 percent of out-of-pocket deductible expenses.
- With “Option 2,” the HRA will reimburse 70 percent ($1,400 for individual; $2,800 for family) and the employee will be responsible for 30 percent ($600 for individual; $1,200 for family) of out-of-pocket deductible expenses.
- $3,000 individual (self-only) coverage and $6,000 family coverage.
- With “Option 1,” the HRA will reimburse 100 percent of out-of-pocket deductible expenses.
- With “Option 2,” the HRA will reimburse 70 percent ($2,100 for individual; $4,200 for family) and the employee will be responsible for 30 percent ($900 for individual; $1,800 for family) of out-of-pocket deductible expenses.
Before implementing an HRA, the church (employer) must select an HRA option for its employees. The HRA option selected will apply to all of the congregation’s employees. After the HRA option is selected and finalized, Everence will provide a plan document explaining how HRAs work to each of the participating employees.
Setting up an HRA
Congregations or employers interested in implementing an HRA must contact Barb Jones at Everence Association by Dec. 1, 2008, at (800) 222-5054, Ext. 3543. Following this initial phone call, Everence will send out an informational packet. This packet will include a set-up form that needs to be completed and returned to Everence.
Questions about HRAs can also be directed to Joy Sider at Keystone Financial Associates at (717) 375-2139.
