ICHRA HRA QSEHRA tax deductible small business group health insurance
A new path for Group Health Insurance

Health Reimbursement Arrangement - Administrative Services

Benafica HRA Administrative Services

An HRA is an employer funded personal benefit account that reimburses employees for certain insurance premiums and out of pocket medical expenses.

Benafica’s expertise brings simplicity and end-to-end support.  

ICHRA HRA QSEHRA tax free small business best-in-class
Set Up & Onboarding
  • Customized HRA plan development that fits your organization’s goals.
  • Introduction to your new Benafica Account Manager.
  • Receive your HRA Implementation Toolkit and your HRA Admin Manual.
  • Mass population mailing for general notification.
  • Employee roll-out meeting(s) and HRA enrollment.
ICHRA HRA QSEHRA tax deductible small business employee employer best-in-class
Ongoing Employer Services
  • Employer web portal for HRA oversight.
  • Monthly ACH billing to employer for HRA Contributions.
  • Processing of New Hires and Terminations by Benafica.
  • Comprehensive HRA Reporting.
  • Renewal Services, including Plan Design review, provided each year.
ICHRA HRA QSEHRA small business employee employer best-in-class
Ongoing Employee Services
  • Initial registration and enrollment for HRA, through the BenngiHealth app (web, iOS & Android)
  • Purchase or maintain suitable health insurance (or Medicare, if eligible).
  • Ongoing submission of paid health insurance premiums by employees using Benngihealth and approval from Benafica
  • Direct deposit of approved reimbursements by Benafica, direct to employee bank accounts.
ICHRA QSEHRA small business employee employer best-in-class customer support
  • Employer Support: Your dedicated account manager will assist with census changes, billing, reporting and more.
  • Employee Support: assistance with open enrollment and ongoing reimbursements.

Customer Support; please contact 651-358-2985, option 2, or email customersupport@benafica.com

New Sales; please contact
651-358-2985, option 1

How a Health Reimbursement Arrangement (HRA) Plan Works

Reimburse your employees – tax free for health insurance and other medical expenses – a unique option.
  • A BenngiHealth account is established for each employee.
  • A monthly benefit allowance is made by the employer and deposited into each Personal Benefit Account.
  • With assistance from licensed insurance agents employees select their insurance plans for health, Medicare, dental, and/or vision.
  • Insurance premiums and other qualified expenses are reimbursed to employees tax free from Benafica.

An HRA is today’s Defined Contribution option

  • Select the appropriate HRA (Health Reimbursement Arrangement) vehicle that best fits your organizations goals.
    • HRA options were expanded by the federal government in 2020 with bi-partisian suppport, each HRA option has a different criteria. You have IHCRA, QSEHRA, EBHRA, Dental -Vision HRA, Retiree HRA, and Group HRA.
  • Employee Classes
    • Give different contributions based on multiple factors, including job criteria, family status, locations, and more.
  • Set your budget
    • Make monthly tax free contributions to each employee’s Personal Benefit Account through the use of your Benafica HRA.
  • Compliance
    • Stay compliant with required employee notices and annual reporting from Benafica.
ICHRA HRA QSEHRA tax free small business employee employer best-in-class defined contribution group health insurance
tax free small business employee PBA single payer healthcare group health insurance

For Employees

  • A Personal Benefit Account (PBA) is established for each employee.
  • A benefit allowance is made into each PBA from the employer each month.
  • With assistance of licensed insurance advisors employees select their health insurance and other qualified insurance plans
  • Employees upload their receipts to Benafica, and are reimbursed by Electronic Funds Transfer into their own bank accounts for individual health insurance premiums and other qualified medical expenses.

What is an HRA?

A Health Reimbursement Arrangement (HRA) is an employer funded health benefit account that reimburses employees for out-of-pocket medical expenses, and in some cases for certain insurance premiums. All HRA dollars are tax deductible to the employer, and in most cases income tax free to the employee.

How to use an HRA – there are 6 different options 

Use an HRA to provide Employer Funded Health Insurance – the new model for employee benefits is here

  1. ICHRA. Individual Coverage HRA. Allows employers of any size to make tax free contributions to reimburse employees for having their own individual or family health insurance and for other qualified medical expenses. Allows for reimbursements following 11 different categories; including geography, part-time vs full-time status, seasonal employees, and more. ICHRA’s satisfy the ACA employer mandate for companies over 50 full time employees if set up correctly.  ICHRAs have no annual contribution caps. 
  1. QSEHRA. Qualified Small Employer HRA. Allows small employers under 50 employees to reimburse tax free for their own individual health insurance. A unique feature of the QSEHRA is it can also provide reimbursement to employees if their health insurance is under a spouse’s group health insurance place. The 2024 QSEHRA contribution cap is $6,150 for self-only coverage and $12,450 for family coverage.

Use an HRA along-side traditional Group Health Insurance

3. EBHRA. Excepted Benefit HRA. Must be offered in conjunction with a traditional group health insurance plan, although employees are not required to be enrolled in the group health insurance to participate in the EBHRA. Employers in 2024 can contribute a maximum of $2,100 per year. An EBHRA can reimburse for dental and vision coverage and short term coverage.  It can also reimburse for other medical expenses. 

4. Group Coverage HRA. Also called an Integrated HRA. Must be offered in conjunction with a traditional group health insurance plan – usually a high-deductible plan. It reimburses employees tax-free to help cover their deductibles, co-insurance amounts, and other approved medical expenses.  Can roll over year to year.

5. Dental/Vision HRA. Designed exclusively for employers who want to reimburse for Dental and Vision expenses. Excellent option to help families plan for expensive dental care above what insurance pays for. Can roll over year to year. 

Use an HRA as a part of your Retiree benefit strategy.

6. The Retiree HRA.  Designed to help retired employees pay for plan-eligible medical expenses and insurance premiums during retirmenet.  Retirement expenses can include COBRA premiums, health insurance premiums, and Medicare premiums. A Retiree HRA is a great option to replace Group Medicare coverage, allowing better customized plan flexibility for retirees and more cost savings for all parties involved. Key longevity tool for employee retention.

Employer Advantages

There are many advantages for employers to offer HRAs.

Cost Control Employers chose each year how much to contribute to employee’s HRA accounts.
Tax-AdvantagedEmployer contributions to the plan are 100% tax deductible.
FlexibilityThe employer Is the plan sponsor and the sole contributor, and the employer Is allowed to design a plan that fits their company.
Low RiskEach reimbursement claim is filed and adjudicated, reducing the potential for benefit fraud.
Recruiting TalentAn Employee Benefit package that includes an HRA can help an employer attract and retain talent.

Employee Advantages

Tax-free Reimbursement When an employee files a claim for a qualified medical expense, the reimbursement is tax free.
Does not Affect IncomeEmployer contributions do not count toward the employee’s gross income.
Personal Healthcare Freedom  Individuals have greater choice in their health care services.
Lower Healthcare Costs  Costs are lower from using tax free dollars.

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