Our plan design expertise and eye for compliance makes plan set-up efficient and easy. On top of that, our Service Agreements are comprehensive, editable PDFs that simplify collecting the information we need to get our clients’ plans up and running.
EBC HRA plan designs come in many shapes and sizes, but the variations stem from key choices by the employer – choices that determine how and when the plan reimburses participants’ medical claims.
At the core of EBC HRA plan design are tiers -- from one to four. Tiers are like dividers that break participants’ EBC HRA coverage into smaller segments, with each segment reimbursing their medical expenses at a different level. Whenever a
|participant incurs enough medical expenses to reach a new tier, their coverage changes accordingly.
The two-tier EBC HRA is a good way to illustrate the idea.
Two-tier EBC HRA
When an EBC HRA has two tiers, each tier reimburses participants’ claims at a different percent. Two-tier plans are one of the most common EBC HRA plan designs.
This sample EBC HRA begins reimbursing participants’ expenses once they have incurred $500 worth of eligible medical expenses. At that time, Tier 2 begins and reimburses 100% of participants’ next $2,000 in eligible medical expenses.
The Versatility of EBC HRA Plan Design
There’s a lot more the EBC HRA can do, including three and four tiers, working alongside a Health Savings Account (HSA) and the BennyTM Benefits Card, and combining multiple expense types under a global maximum benefit.
Above: An illustrated version of a two-tier EBC HRA.
|We can enhance the BESTflex Plan with one of many optional features. We work with employers to determine which options are right for their plan.
Divisions: Each division can have separate fees, contacts, and funding
Internet Enrollment: Web-based enrollment system
2-1/2 month grace period: Extra 2-1/2 months to use up FSA funds
Flex plan debit card: Add debit card convenience to the BESTflex Plan with the BennyTM Benefits Card
Limited (HSA-compatible) Health Care FSA: Covers dental and vision only
Employer contributions: Contribute funds to participants' BESTflex Plan accounts
Individual billed insurance premium account: Reimburses premium payments for insurance plans that participants purchase on their own