What is an HRA (Health Reimbursement Arrangement)?

An HRA is an employer-established account used to pay for an employee’s eligible medical expenses and premiums on a tax-free basis. The funds in these accounts can roll over from year to year; therefore, funds are not forfeited. Additionally, the plans serve to increase a participant’s responsibility for and ownership of medical expenses and savings.

HRA vs VEBA

The word VEBA is often used interchangeably with the word HRA. However, a VEBA is actually the name of the underlying Employee Benefit Trust that is used to fund the HRA. This Trust can be either a VEBA 501(c)(9) Trust or a 115 Governmental Trust.

Two Types of Employee Benefit Trusts

The VEBA Trust is used for private sector organizations, public sector corporations and multi-employer plans; whereas, 115 Trusts are used only by individual governmental entities. The main difference between the two trusts is that the VEBA requires IRS approval and annual reporting. NIS has experience with both VEBA and 115 Trust plans.

NIS HRA Applications

More and more, public sector employees and bargaining units are requesting these plans, sometimes called Medical Reimbursement Plans or VEBAs. NIS (National Insurance Services) has developed five HRA Applications that help public sector organizations and their participants reduce costs.

Why Choose NIS for your HRA Plan?

• Experience
• Service
• Flexibility
• Fund Control
• Fees that Make Sense

Our Experience with HRAs

NIS (National Insurance Services) has provided HRA solutions to over 212 public sector organizations, executing over 447 employer plans in seven states. NIS was the first to implement HRA plans in the state of Wisconsin beginning in 2002. As a specialist in public sector employee benefits, our solutions contain features that allow flexibility during negotiations that address both the employer’s and the bargaining unit’s interests.

Service

		Employer enjoys a dedicated representative as a single point of contact
		Face-to-face meetings with participants upon request
		Comprehensive plan administration: implementation, IRS compliance, account statements, reports, daily valuation, transfers and distributions
		Participant access to 24/7 online support and weekday telephone support
		Claims processed and paid weekly
		No enrollment forms required
		Participants receive quarterly statements

Flexibility

		Active employee and retiree plans available
		Customized reports to fit your specific needs such as detailed forfeiture reports
		Simplified forfeiture notification by email or with deposit report
		Unique identification numbers to avoid internet transmission of social security numbers
		Multiple vesting schedules accommodated under one plan
		Direct deposit option for reimbursement checks
		If reimbursement is used for retiree insurance premiums, checks can be direct deposited into the plan sponsor's account (approval required)

Fund Control

		Participants are free to select their own investment options
		Funds at the plan level cannot be moved to different investment companies by the third-party administrator without the approval of the plan sponsor.

Fees That Make Sense

		After separation of service or retirement, administration fees cease
		Never any asset-based fees on fixed-interest accounts

For Employer use only. Not for use with the general public

Securities offered through GWN Securities Inc. 11440 Jog Road, Palm Beach Gardens FL 33418 866.650.0132 Member FINRA, SIPC. National Insurance Services is not affiliated with GWN Securities, Inc.

More Financial Solutions:

Reduce or Eliminate Taxes on Special Payments Made to Employees at Retirement

Address issues related to GASB 43/45 and OPEB liabilities

FSA (Flexible Spending Account)

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