You allocate a set amount of money toward an employee's HRA. When the employee has an eligible expense, they may receive reimbursement from the HRA. The HRA funds can be used toward satisfying the deductible for their health plan.
Blue Cross and Blue Shield of North Carolina has chosen BCBSNC Fund Administrator as our HRA administrator. If you choose, you can select another administrator and simply purchase a high deductible Blue Options plan. Advantages of selecting BCBSNC Fund Administrator include:
With our Auto Pay option, you can elect to have employees paid directly from the employee's HRA, eliminating the need for filing claims for plan expenses. Or, you can offer a debit card to allow your employees even greater convenience in paying for their health care expenses. You can also choose a rollover percentage for any HRA reimbursement dollars not spent during the year. You can even add a flexible spending account (FSA) to your benefits plan and decide which funds are utilized first. We've designed Blue Options HRA to be customizable to your benefits strategy.
Example: Figures are for illustrative purposes only. Actual plan design, costs and contributions may vary. Provider may collect an estimated amount at the time of service.
|Mary's employer purchases a health plan with a deductible of $2,000 and earmarks $500 for Mary's HRA.||Employer contribution
|Mary visits a Blue Options doctor. The doctor files a claim for her.||
|BCBSNC processes the claim, taking into account negotiated fees with the doctor, as well as, how much Mary has met towards her deductible. Once the claim has been processed, BCBSNC sends information to Mary and her doctor.||
$150Office visit (BCBSNC negotiated rate - the amount Mary owes)
|Mary's doctor bills her once her claim is processed. Since she has not met her $2000 deductible, Mary is responsible for $150.||Doctor bills Mary
|Mary submits a claim for HRA reimbursement, uses her HRA debit card or reimburses herself through the My HRA Account online tool. If Mary's employer has selected our Auto Pay option, she or her provider is reimbursed automatically and does not need to submit a claim for plan expenses||HRA reimbursement
|Upon approval, Mary's HRA balance (available to use for deductibles, eligible expenses, etc.) is now $350.||Mary's HRA balance