Administrative Services

HEALTH REIMBURSEMENT ARRANGEMENT (HRA)

A Health Reimbursement Arrangement (HRA) is a stand-alone, employer-funded plan commonly combined with a High Deductible Health Plan (HDHP). An HRA allows employers to fund an account to pay employees' medical expenses that are not covered by insurance such as deductibles, copays or co- insurance.

Employers determine when HRA funds are available to employees, what expenses can be reimbursed, and how unused funds are disbursed upon employee termination. Reimbursements on qualified expenses are tax-deductible for the employer and tax-free for the employee. If elected by the employer, unused funds can also be carried forward.

There are various ways for an employer to design an HRA. BSB Consultants will assist employers with an HRA plan design that best fits their company. We will provide the adoption agreement as well as assist in the creation of communication materials to employees and provide ongoing administration for adjudicating claims and issuing reimbursements.

The most widely used HRA designs are:

First Dollar HRA

Reimburses expenses from the first dollar up to the accumulated balance in the HRA account.

The Bridge HRA

Plan pays for eligible expenses after the employee pays an initial amount established by the employer.

Shared HRA

Employer and employee share the cost of covered expenses subject to the health insurance plan deductible.

Employer or Employee GAP HRA

Employer or employee pays the first portion of deductible expenses up to a limit defined by the plan.

Percentage Based Reimbursement

Employer HRA reimburses the employee a percentage of their out-of-pocket deductible costs up to the employer defined HRA maximum amount.

Copay Share

The employer can set a specific dollar amount to reimburse certain co-pays.

COBRA ADMINISTRATION

COBRA administration can be a significant drain on your internal resources. Factor in the consequences of non-compliance and it's easy to understand why employers turn to BSB Consultants to manage this burdensome administrative task.

The COBRA administration specialists at BSB Consultants will generate and mail the required notifications following the initial notice, as well as track, document and update all COBRA-related events. We also provide and maintain the necessary documentation to respond to an Internal Revenue Service audit of your COBRA practices.

The law identifies four distinct groups who are COBRA eligible:

1. Employees and their families who lose coverage because of a covered employee's termination or reduction in hours.

2. Dependent children who lose coverage once they exceed the plan's age limit for eligibility.

3. Spouses and dependent children who lose coverage as a result of divorce, legal separation or death of a covered employee.

4. Spouses and dependent children who lose group coverage because the covered employee became entitled to Medicare.

Certain cases involving the bankruptcy of the employer, COBRA coverage may be available for retired employees, their spouses and dependent children.

Standard COBRA Services

Account Setup

• Provide administration manual, establish and collect all plan information, rates, new plan setup as well as takeover of all existing COBRA participants.

Qualifying Event Notification

• Initial notices of COBRA rights and obligations are provided.
• Customized COBRA package is mailed to employees, covered spouses and dependents informing them of their ability to elect COBRA. The package includes election forms, COBRA eligibility notification letter, enrollment forms for each beneficiary, and premium computation form.

Ongoing Services

• Coupon payment book
• Toll-free helpline
• COBRA audit support
• Dedicated COBRA account manager
• COBRA premium payment management
• Records archived for seven years including proof
• of notification
• Communicate the notification of elections and
• terminations to carriers on behalf of the
• employer
• COBRA termination notice
• Open enrollment assistance