Health Reimbursement Arrangement (HRA)
Offer enhanced health benefits at a lower cost
The HealthJibe health reimbursement arrangement (HRA) is a flexible way to lower health benefit costs for you and your employees. Combine a HRA with a high deductible group health plan to lower premium costs while offering a competitive health benefit that your employees will appreciate.
The HealthJibe HEA platform supports both an integrated HRA and a limited HRA (vision/dental expenses only).
The HealthJibe integrated HRA can be used with any traditional group health insurance plan but is especially appropriate for high-deductible group health plans. In this scenario the employer agrees to reimburse all or part of the deductible and/or other cost-sharing components of the underlying group health plan (co-payments, co-insurance, etc.). This arrangement is typically referred to as a Gap HRA because it helps bridge the cost-sharing gap associated with today's higher deductible plans.
A Gap HRA is an effective tool because experience shows that in every employee group regardless of the size:
50% of the people won't use the health plan or will use it rarely
A small group of people use the plan incidentally for minor illness or injury
Less than 10% will use the plan a great deal for a chronic condition, accident, etc.
Rather than paying higher premiums for unused coverage, employers are instead able to use those dollars to reimburse participant cost-sharing expenses only if the expenses actually occur.
The HealthJibe limited HRA is designed to allow participants to submit reimbursement requests (via the HealthJibe app) for vision and dental expenses up to an amount established by the employer.
The limited HRA can be used with a group health plan if an employer wishes to reimburse just dental and vision expenses, and not cost-sharing or other Section 213(d) medical expenses, through the HRA.
Finally, the limited HRA is used to allow participants to contribute to a health savings account (HSA) during the plan year. The participant indicates that their HealthJibe HEA account should be HSA compatible when they activate their HealthJibe account. This causes any HRA to be treated as a limited HRA in order to meet the regulatory requirements associated with a participant utilizing both a HSA and HRA during a plan year.
The HealthJibe HRA and Consumer Health Engagement
The HealthJibe HEA platform offers a unique opportunity to combine a HRA with consumer health engagement to empower participants to live healthier and to become smarter healthcare consumers. A key component of the platform is a health engagement feature that encourages activities that are proven to stabilize health care costs including:
A focus on completing important preventive screenings and exam
Awareness and understanding of emerging or prospective health risks
Monitoring of lifestyle habits like activity, sleep, weight, and blood pressure that contribute to lifestyle diseases such as obesity, diabetes, heart disease and more.
Participantcs can earn additional reimbursement allowances when they demonstrate that they are current with their preventive screenings and are monitoring their risks and lifestyle habits. A typical design for an integrated HRA that includes health engagement is:
Employer agrees to reimburse up to $1300 for cost-sharing expenses during the plan year as part of the Gap HRA.
Employer agrees to reimburse another $1200 for cost-sharing expenses accrued at a rate of $100 whenever a participant earns 100 points using the HealthJibe during the plan year.
In this way the participant can accrue up to $2500 in cost-sharing reimbursements, but only if they demonstrate that they are engaged in their health via the HealthJibe app. Otherwise they are limited to $1300 for the plan year.
Employers benefit from this model as well because they only reimburse expenses that actually occur and the total reimbursement liability is reduced for those participants that choose not to engage in their health.
The consumer health engagement component can also be used with a limited HRA to further restrict the total permitted reimbursement
amount for a participant based on their willingness to engage in their health.
The HealthJibe HEA
The HealthJibe Health Empowerment Arrangement (HEA) platform is the first supplemental specialty health benefits solution that combines the power of tax-advantaged account-based benefits with consumer health engagement technology, and delivers it all through a simple to use mobile app.
The HealthJibe HEA enhances both traditional group health insurance plans, as well as the new QSEHRA available to small businesses, by offering account-based benefits including health and dependent care flexible spending accounts (FSA), commuter accounts (transit/parking), and health reimbursement arrangements (HRA).
The HealthJibe HEA is delivered through a mobile app (HealthJibe) and makes consumer health engagement the foundation of your health benefit in order to stabilize health care costs over the long term by helping your plan participants to stay on top of preventive care, emerging risks, and lifestyle habits.
The HealthJibe app is available on iOS and Android devices and provides a personalized preventive care plan, automated metabolic syndrome lab testing through LabCorp Patient Service Centers (when offered by an employer), and connects to the leading wearable health and fitness trackers, as a well as a network of retail health kiosks, to make it simple for employees to easily stay on top of prevention, risks, and habits. And of course, they can also easily submit reimbursement requests from HealthJibe as well.