Retirement Health Reimbursement Arrangements with CareFlex

Retirement Health Reimbursement Arrangements

According to Kaiser’s Employer Health Benefits 2009 Annual Survey, 29% of employers with 200 or more employees offer retiree health benefits. The majority of these employers (92%) offer retiree benefits to early retirees, with 68% of employers providing benefits to Medicare recipients.

Recent increases in the cost of health insurance have employers questioning their ability to continue a sustainable retiree benefits. As an alternative to simply eliminating a traditional retirement package, Employers now look to Health Reimbursement Arrangements to provide a predictable cost containing solution.

Health Reimbursement Arrangements are notional accounts, requiring the employer to “credit” an individual's account at the start of each plan year. The employer is only required to deposit funds once a qualified claim has been incurred and submitted for reimbursement by the participant. Health Reimbursement Arrangements are simply bookkeeping accounts with the employer making a promise to pay.

As the plan sponsor Employers will have the ability to structure a retiree HRA program that is beneficial to both the employer and the retiree. Funds can be allocated as a lump sum or on an annual, quarterly, or monthly frequency. In addition to the funding allocation, Employers will have the ability to determine what expenses are eligible for reimbursement. The most common out of pocket medical expense for Retirees is health insurance premiums. Any unclaimed funds can be rolled over to future plan years.

An effective use of a Retirement Health Reimbursement Arrangement program is introducing the benefit in an employee population that retires prior to age 65. The HRA benefit can be used to cover eligible expenses incurred prior to enrollment in Medicare. Remaining funds in the HRA account can be used to pay for out of pocket medical expenses not covered through Medicare.

Contact CareFlex today to determine if a Retiree Health Reimbursement Arrangement is viable option for your company.

	Simple. Convenient. Smart.	Additional Card Request Authorized Form for Information Release Dependent Care Provider Form Letter of Medical Necessity Claim Filing Instructions Dependent Care Reimbursement Request Health Care Reimbursement Request Transit & Parking Reimbursement Accessing Your Account Online FSA Over-the-Counter Drug Guide Using the CareFlex Express Benefit Card Direct Deposit Authorization Instructions for Online Claim Entry

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Who is CareFlex? Tools of Today Sponsoring a Plan A Special Message to the CFO Account Management Retirement Health Arrangements Wellness Incentives Reporting Capabilities Request a Proposal Privacy Policy	Retirement Health Reimbursement Arrangements According to Kaiser’s Employer Health Benefits 2009 Annual Survey, 29% of employers with 200 or more employees offer retiree health benefits. The majority of these employers (92%) offer retiree benefits to early retirees, with 68% of employers providing benefits to Medicare recipients. Recent increases in the cost of health insurance have employers questioning their ability to continue a sustainable retiree benefits. As an alternative to simply eliminating a traditional retirement package, Employers now look to Health Reimbursement Arrangements to provide a predictable cost containing solution. Health Reimbursement Arrangements are notional accounts, requiring the employer to “credit” an individual's account at the start of each plan year. The employer is only required to deposit funds once a qualified claim has been incurred and submitted for reimbursement by the participant. Health Reimbursement Arrangements are simply bookkeeping accounts with the employer making a promise to pay. As the plan sponsor Employers will have the ability to structure a retiree HRA program that is beneficial to both the employer and the retiree. Funds can be allocated as a lump sum or on an annual, quarterly, or monthly frequency. In addition to the funding allocation, Employers will have the ability to determine what expenses are eligible for reimbursement. The most common out of pocket medical expense for Retirees is health insurance premiums. Any unclaimed funds can be rolled over to future plan years. An effective use of a Retirement Health Reimbursement Arrangement program is introducing the benefit in an employee population that retires prior to age 65. The HRA benefit can be used to cover eligible expenses incurred prior to enrollment in Medicare. Remaining funds in the HRA account can be used to pay for out of pocket medical expenses not covered through Medicare. Contact CareFlex today to determine if a Retiree Health Reimbursement Arrangement is viable option for your company.


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