HRA plan for small business
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: Have you ever heard of a 2-plan limit on the number of health insurance plans an employer is allowed to set up? My administrator refuses to set up an HRA plan for our small company because there are already two insurance plans offered. We suspect that it is an internal Aetna rule, not one which comes from the IRS or any other Federal or State source.
A: Your assumption is correct; this is an administrative issue rather than a tax or legal issue. The work-around is to have the Health Reimbursement Arrangement (HRA) administered separately from the insurance. This will also save money since insurance administrators usually charge more for HRA plan administration than a stand-alone plan. Freedom Benefits routinely sets up HRA plans when more than two insurance plans are involved. The cost is $150 and you can order the plan online for one business day setup at www.FreedomBenefits.org .
Summary
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Freedom Benefits small business HRA