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GLP-1 Reimbursement Arrangement

A GLP-1 HRA is an employer-funded health reimbursement arrangement designed to help employees pay for eligible GLP-1 weight loss medications and related medical expenses, while giving employers more control over plan design and healthcare costs.

Why Employers Offer a GLP-1 HRA

Rising demand for GLP-1 medications has created new challenges for employer health plans. A GLP-1 HRA allows employers to provide meaningful support for weight management and related health conditions without making major changes to their underlying medical plan. Employers can define reimbursement limits, establish eligibility requirements, and create a more predictable approach to managing high-cost prescription expenses.

Offering a GLP-1 HRA can also help employers strengthen recruitment and retention efforts by providing a modern, highly valued benefit that supports employee health and wellness goals.

Why Employees Value a GLP-1 HRA

GLP-1 medications can be expensive, even for employees with insurance coverage. A GLP-1 HRA helps reduce out-of-pocket costs for eligible medications and related medical expenses, making treatment more accessible and affordable.

Employees benefit from additional financial support while gaining access to treatment options that may help improve overall health, weight management, and quality of life.

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How it works for Your Employees

When you offer a GLP-1 HRA, employees can submit claims for reimbursement for out-of-pocket
medical expenses that are not covered by your company’s primary health insurance plan.

Employer Contributions

As the employer, you determine the annual contribution limit. These contributions are typically made on an annual basis and can be used by employees to pay for eligible medical expenses.

Eligible Expenses

A GLP-1 HRA can be designed to reimburse eligible expenses related to weight management and prescribed GLP-1 medications. Depending on the employer’s plan design, eligible expenses may include prescription copays, deductibles, physician visits, nutrition counseling, and other qualifying medical expenses under IRS guidelines.

Accessing Funds

Employees typically submit claims for reimbursement or use a debit card linked to their HRA, depending on how the plan is set up. The reimbursements are made tax-free as long as they are for eligible expenses.

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