Core Documents

  Employer‑sponsored health plans   are a cornerstone of employee benefits in many countries, particularly in the United States. When an employer offers group health insurance to its workforce, it assumes a range of legal, administrative, and communication obligations. Among the most critical obligations—especially under U.S. law—is the duty to provide employees with a   Summary Plan Description (SPD)   and, when needed, a   wrap document   that “wraps” other plan materials into a compliant ERISA plan document. Failure to comply may trigger fines and regulatory scrutiny. What are employer‑sponsored health plans? An employer‑sponsored health plan (often called a group health plan) is a health insurance or self‑insured arrangement provided by an employer to cover employees (and often their dependents). These plans typically negotiate with insurers (or third‑party administrators) to offer benefits like hospital care, physician visits, prescription drugs, welln...

  In the world of employer-sponsored benefits,  Health Flexible Spending Accounts (Health FSAs)  are powerful tools for both employees and employers to manage medical expenses more efficiently. Combined with Section 125 plans or “cafeteria” plans, Health FSAs help reduce tax burdens while giving access to funds for eligible health expenses. Here’s what you need to know. What Is a Health FSA? A Health FSA is an account set up by your employer under a Section 125 plan that allows you to set aside pre-tax dollars from each paycheck to cover eligible medical, dental, and vision expenses. These funds can be used to pay out-of-pocket costs like copayments, prescriptions, some over-the-counter items, and deductibles. The money you contribute reduces your taxable income. Unlike Health Savings Accounts (HSAs), FSAs are typically not tied to high-deductible health plans and are available under more general benefit offerings. FSAs are governed by specific IRS rules and must be part ...

  When employers want to supplement traditional group health plans without the burden of heavy legislative mandates, the Excepted Benefit Health Reimbursement Arrangement (EBHRA)   becomes a powerful option. Central to implementing an EBHRA is the   EBHRA plan document —a foundational requirement that ensures your benefit structure is both compliant and effective. What Is an EBHRA? An EBHRA is a limited-dollar Health Reimbursement Arrangement that reimburses employees for out-of-pocket healthcare costs related to excepted benefits—such as dental, vision, short-term medical coverage, long-term care, COBRA premiums, copays, and deductibles. Unlike other HRAs, you don’t need employees to enroll in the group plan to participate, offering flexibility while maintaining tax-free reimbursement. Why the EBHRA Plan Document Matters To legally establish an EBHRA, you must have a formal, written plan document and an accompanying Summary Plan Description (SPD)—both...

  In today’s competitive job market, employers are always looking for ways to attract and retain top talent while managing rising healthcare costs. One option gaining popularity is the   Group Coverage Health Reimbursement Arrangement (HRA) . This benefit design allows businesses to support employees’ healthcare expenses in a cost-effective and flexible way, while also providing significant tax advantages. What is a Group Coverage HRA? A  Group Coverage HRA  is an employer-funded benefit plan that works alongside a traditional group health insurance policy. Instead of shouldering the entire burden of high insurance premiums, employers can choose a plan with higher deductibles or lower monthly costs, and then reimburse employees for eligible out-of-pocket medical expenses through the HRA. This approach allows businesses to control costs while still offering robust health benefits that employees value. Key Benefits of a Group Coverage HRA Cost Savings Employers can sav...