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Advanced Flex Plan Administration with the Human Touch
Excepted Benefit HRA
An Excepted Benefit Health Reimbursement Arrangement (EBHRA) is a type of employer-funded health benefit that allows employers to reimburse employees for certain limited health-related expenses. Unlike other HRAs, the EBHRA is not intended to cover major medical expenses but can be used for things like dental and vision expenses, COBRA continuation coverage, and short-term limited duration insurance. Available to employees even if they do not enroll in the employer’s group health plan, EBHRAs offer added flexibility and help cover supplemental healthcare costs without replacing primary health insurance.
Eligibility
Employers
Employers who offer a Group Health Plan may offer an EBHRA.
Participants
Employees must be offered a Group Health Plan but do not need to enroll to be eligible for an EBHRA.
Who Can Contribute
Only the Employer can contribute to an EBHRA.
Advantages of an EBHRA
Employers
The EBHRA allows the Employer to supplement their Group Health Plan by paying for items not covered.
Participants
EBHRA funds are tax-free to employees.
How it Works
For Employers
The Employer hosts Open Enrollment and allows employees to enroll in the EBHRA.
HRA funds are available to employees on the first day of the Plan Year based on how the Plan is structured.
EMPOWER administers the EBHRA and issues reimbursements to employees after claims are filed. EBHRA reimbursements are made from an Employer-owned bank account.
For Participants
Employees can enroll in the EBHRA separately from the Group Health Plan.
Participants pay for expenses out of their own pockets.
Participants file claims to EMPOWER. EMPOWER reimburses claims conveniently from the Employer’s bank account.
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EMPOWER's
Benefits Solutions Guide
EMPOWER’s Benefits Solutions Guide takes the guesswork out of benefits by providing a comprehensive synopsis of each plan type, as well as comparisons and sample scenarios.
