Core Documents

  A   Group Coverage HRA  (Health Reimbursement Arrangement)   is an innovative employee benefit solution designed to help employers provide health coverage while controlling costs. It allows businesses to reimburse employees for qualified medical expenses and health insurance premiums, supplementing their primary insurance plans. Flexible and tax-advantaged, Group Coverage HRAs are becoming a popular choice among employers seeking to offer attractive healthcare benefits without breaking the bank. 1. What is a Group Coverage HRA? A Group Coverage HRA is an employer-funded account used to reimburse employees for out-of-pocket healthcare expenses not covered by their group health insurance plan. Key Features: Employer-Funded:  Only employers contribute to the HRA; employees do not add funds. Tax Advantages:  Contributions are tax-deductible for employers and reimbursements are tax-free for employees. Customizable Limits:  Employers determine the annual c...

  The   ERISA Wrap Summary Plan Description (SPD)   is an essential document for employers offering health and welfare benefits to their employees. Under the Employee Retirement Income Security Act (ERISA), employers are required to provide a clear summary of their employee benefit plans. The Wrap SPD consolidates various benefit plans into a single, easy-to-understand document while ensuring compliance with federal requirements. This article explains what a Wrap SPD is, why it’s important, and how employers can stay compliant. What Is an ERISA Wrap SPD? An  ERISA Wrap SPD  is a comprehensive document that supplements or “wraps” around insurance policies and benefit plans provided by an employer. It integrates all required information, such as plan details, participant rights, and administrative procedures, into one document. This simplifies compliance with ERISA requirements and provides employees with a clear understanding of their benefits. Why Is an ERISA Wr...

  Health Flexible Spending Accounts (FSAs) are employer-sponsored benefits that allow employees to set aside pre-tax dollars to cover eligible healthcare expenses. These plans offer a valuable way to save on healthcare costs, as contributions to an FSA are deducted from paychecks before taxes, reducing taxable income. Here’s a closer look at how Health FSAs work, their benefits, eligible expenses, and some key considerations to keep in mind. How Health FSAs Work Employees who participate in a  Health FSA plans  decide on an annual contribution amount during their employer’s open enrollment period. This amount is deducted evenly across each paycheck throughout the year. One of the most significant benefits of an FSA is the tax savings: contributions are made pre-tax, so individuals can reduce their taxable income, potentially saving hundreds of dollars each year. Once enrolled, participants receive a debit card linked to the FSA or may submit receipts for reimbursement, de...