Reimbursement Account Administration

3PAdministrators offers administration for Health Reimbursement Accounts (HRA) and Flexible Spending Accounts (FSA). In order to provide our clients with a high-degree of service and satisfaction, we offer participants debit card access to their reimbursement accounts.

Health Reimbursement Accounts (HRA)

Health Reimbursement Accounts (HRA) are employer funded accounts that provide reimbursements to employees for qualified medical expenses (defined by section 105 and 106 of the Internal Revenue Code). HRA balances are rolled over each year with no requirement to spend the full amount annually. HRA’s are offered in conjunction with high-deductible major medical plans in which the individual may contribute up to $3,000/year ($5,950/year for families).

With an HRA, employees enjoy first dollar benefits on many medical expenses that would otherwise be an out-of-pocket cost. The accounts allow the employee an opportunity to utilize the funds to cover deductibles or coinsurance amounts, co-payments and services, or supplies that may not be covered by the health plan. Premiums for long-term care coverage are also considered to be qualified expenses.

The employee determines the type of account in which the HRA funds are held, and can even invest in mutual funds for added growth. If the employer offers a cafeteria plan, contributions can be made through that plan and are pre-tax transactions. Distributions are also tax free; however, penalties apply if funds are withdrawn for purposes other than healthcare expenses. Additionally, an HRA belongs to the employee so it moves with a change in employment.

 Click here to see a full Reimbursement Account Comparison chart.

Health Savings Accounts (HSA)

Health Savings Accounts (HSA) are offered in conjunction with a high deductible major medical plan. Individuals may contribute up to $3,350 or up to $6,650 for families each year. These contributions can be used to cover the high deductible, any co-payments and services not covered through the health plan. Premiums for long term care coverage are also qualified expenses. If the employer offers a cafeteria plan, contributions can be made through that plan and are pre-tax transactions.

Unlike flexible spending plans where contributions not used within a year are lost, the balance in an HSA can be rolled over for future use. Distributions are also tax free but penalties apply if funds are withdrawn for purposes other than healthcare expenses. The account holder determines the type of account and can even invest in mutual funds for added growth. An HSA belongs to the employee so it moves with him if he changes employment.

We offer HSA banking solutions in Partnership with HealthCare Bank.