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Examples of HRA Plan Designs

HRA plan designs are virtually limitless, below are examples of frequently used plan designs. These examples are based on pairing an HRA with a High Deductible Health Plan that has a $2,000 deductible with 100% coinsurance.

Design 1– Employer Pays First

  • Employer reimburses first $1,000 from HRA
  • Employee pays the next $1,000
  • Health plan pays remaining covered benefits

Benefits: Provides first-dollar coverage for employees. Can help assure a smooth transition to a high deductible plan.

Design 2– Employee Pays First

  • Employee pays first $1,000 of deductible
  • Employer reimburses next $1,000 from HRA 
  • Health plan pays remaining covered benefits

Benefits: Employer saves the most money. Encourages informed and responsible use of health care services.

Design 3– Split Deductible

  • Employer and employee split all to the deductible costs
  • Health plan pays remaining covered benefits

Benefit: Offers a “middle ground” plan in which expenses are shared from the outset.

Design 4– Divided Deductible

  • Employee pays first $500 of deductible
  • Employer reimburses next $1,000 from HRA
  • Employee pays next $500 of deductible
  • Health plan pays remaining covered benefits

Benefit: Employee deductible is divided in two. The initial employee portion can mirror the group’s current plan deductible.