A Health Reimbursement Arrangement (HRA) can be one of the most valuable benefits an employer offers. Whether you sponsor a traditional Group Coverage HRA, a Qualified Small Employer HRA (QSEHRA), an Individual Coverage HRA (ICHRA), or another type of HRA, your employees rely on the plan to help pay for healthcare expenses.
The success of an HRA depends not only on the plan design, but also on the administrator behind it. If your current administrator isn’t providing the level of service your organization needs, it may be time to consider making a change.
Fortunately, switching HRA administrators can be much easier than employers expect.
Your Employees Struggle to Get Answers
Employees may have questions about:
- Eligible expenses
- Claim submissions
- Reimbursements
- Required documentation
- Account balances
When employees cannot receive prompt, accurate answers, those questions often end up with your HR or payroll staff.
A good HRA administrator should provide responsive support to both employers and employees.
Your HR Team Is Spending Too Much Time on Administration
Your HRA should simplify benefits administration—not create additional work.
If your staff regularly spends time resolving:
- Claims issues
- Enrollment questions
- Employee complaints
- Eligibility questions
- Reimbursement problems
your administrator may not be providing the level of service you deserve.
An effective administrator should reduce your administrative burden, allowing your team to focus on running your business.
Responses Take Too Long
Many HRA questions are time-sensitive.
Whether you’re onboarding a new employee, updating eligibility, or helping an employee submit a claim, waiting days for a response can be frustrating.
Many employers appreciate working with an administrator that provides timely, personalized service rather than routing every question through a large call center.
Claims Processing Is Inconsistent
Employees depend on predictable claim processing.
If claims are frequently delayed, documentation requirements seem inconsistent, or employees are confused about why expenses were approved or denied, confidence in the benefit begins to erode.
A well-administered HRA should provide clear communication and consistent claims administration.
Your Business Has Changed
The HRA that worked several years ago may no longer be the best fit today.
For example, your business may have:
- Grown significantly.
- Begun hiring employees in multiple states.
- Switched health insurance strategies.
- Added Medicare-eligible employees.
- Experienced substantial premium increases.
Changes like these may warrant reviewing whether your current HRA and your administrator still meet your needs.
Your Administrator Only Supports One Type of HRA
Not all HRAs are the same.
Depending on your business, one of the following may be more appropriate:
- Group Coverage HRA
- Qualified Small Employer HRA (QSEHRA)
- Individual Coverage HRA (ICHRA)
- Retiree HRA
- Spousal HRA
An administrator with experience across multiple HRA types can help you understand your options if your needs evolve.
You’re Looking for Additional Benefit Solutions
Many employers eventually want to expand beyond their HRA.
For example, you may also be interested in:
- Flexible Spending Accounts (FSAs)
- Limited Purpose FSAs
- COBRA administration
- Lifestyle Spending Accounts (LSAs)
- Commuter benefits
Working with one administrator for multiple benefit programs can simplify administration and provide a more consistent experience for employees.
Is It Difficult to Switch HRA Administrators?
Many employers assume switching administrators will be disruptive.
In reality, an experienced administrator can help coordinate the transition by assisting with:
- Plan implementation
- Required plan documents
- Employee communications
- Claims transition
- Ongoing administration
The transition process depends on the type of HRA you sponsor, but it is often much smoother than employers expect.
When Should You Switch?
Many employers choose to change HRA administrators at the beginning of a new plan year.
However, depending on your plan design and circumstances, there may be other opportunities to transition.
Planning ahead gives both administrators time to coordinate a smooth implementation.
Questions to Ask Your Current Administrator
If you’re evaluating your current HRA administration, consider asking:
- How quickly are employer and employee questions answered?
- How are claims processed?
- What reporting is available?
- What support is provided during implementation?
- Can you administer multiple types of HRAs?
- What other benefit programs do you support?
The answers can help you determine whether your current administrator is still the right fit.
How Empower Helps Employers Administer HRAs
Empower works with employers across the country to administer a variety of Health Reimbursement Arrangements, including:
- Group Coverage HRAs
- Qualified Small Employer HRAs (QSEHRAs)
- Individual Coverage HRAs (ICHRAs)
- Spousal HRAs
- Retiree HRAs
We also administer:
- Flexible Spending Accounts (FSAs)
- Limited Purpose FSAs
- COBRA administration
- Lifestyle Spending Accounts (LSAs)
- Commuter benefits
Our focus is on responsive service, practical administration, and helping employers find benefit solutions that fit their organizations.
Thinking About Changing HRA Administrators?
If you’re unhappy with your current HRA administrator, or simply want to compare your options, Empower would be happy to discuss your current plan.
We’ll help you understand the transition process, answer your questions, and determine whether another HRA design or additional benefit programs may better serve your employees and your business.
