Enrollment Assistance and Liferaft: Simplifying HRA Administration
Discover how Liferaft's user-friendly platform and personalized support streamline health insurance enrollment.
August 24, 2023
A feature Liferaft offers is one-on-one enrollment assistance. This works by employees setting up a meeting with one of Liferaft’s expert agents, who will advise them to pick a health insurance plan that fits their specific needs.
Once the plan is chosen, employees will receive a login, plan card, access to a mobile application, etc., from the selected insurance carrier. Going forward, it is up to the employee to manage their plan. This means paying their monthly premium and requesting reimbursements on the Liferaft platform.
HR’s only task is accepting or denying the transfer of reimbursement funds, which only takes a few minutes each week.
All reimbursement funds are made through Liferaft’s 100% digital platform. Once employees accept their Health Reimbursement Arrangement (HRA) benefit in their member dashboard, they’ll be instructed to connect their bank to their Liferaft account.
Employees will submit their claims through their member dashboard, and Liferaft will approve or deny the claim. If the claim is approved, the reimbursements are directly deposited into the bank account they connected.
The Liferaft platform processes all employee claims within 24 hours. Once a claim is approved, funds typically arrive in the employees’ bank account within 3 - 5 business days.
With the Individual Coverage HRA (ICHRA), employers can customize contribution amounts without limitations or maximums, ensuring benefits that match their financial resources and corporate objectives. Meanwhile, employees can select individual health insurance plans perfectly tailored to their unique requirements.
As of 2024, the Qualified Small Employer HRA (QSEHRA) has a maximum reimbursement limit of $6,150 for individuals and $12,450 for family coverage. These thresholds might be modified to account for inflation, underscoring the importance of keeping current with the latest limitations.
An Excepted Benefit HRA has a capped reimbursement of $2,100 in 2024 (annually adjusted for inflation). This covers excepted benefit premiums and other qualifying medical costs designated by the employer. Additionally, EBHRA participants are provided access to non-excepted, non-account-based group health plan coverage, with individual enrollment remaining optional.
The Standard HRA serves as an employer-sponsored initiative, facilitating the reimbursement of qualified medical costs incurred by employees. Its primary purposes include supplementing your group health insurance plan and enhancing employee contentment and well-being. The Standard HRA benefits employers with no limitations or maximum contribution constraints.
HRA reimbursements are tax-deductible for employers and are received tax-free by employees. Instead of paying payroll taxes on reimbursements given, the reimbursements will qualify as an employer tax deduction. In addition, employees receive reimbursements without having to recognize income tax.
Reimbursements are determined by considering the cost of the lowest-priced Silver health insurance plan accessible to employees in their specific zip code through the exchange. This cost should not exceed 9.12% of the employee's annual household income.
Liferaft's enrollment assistance is characterized by its personalized approach. Unlike other HRA administrators, Liferaft offers one-on-one guidance, where expert agents collaborate with employees to choose health insurance plans that perfectly align with their needs and preferences.
Liferaft recognizes the challenges of transitioning from traditional insurance to HRAs. Through personalized support, Liferaft guides businesses and employees through this change, ensuring a smooth and hassle-free shift that maintains a focus on employee well-being.
Liferaft's digital reimbursement platform ensures a streamlined and efficient process for employees to request reimbursements. With its user-friendly interface, employees can effortlessly submit claims, and once approved, funds are directly deposited into their bank accounts, minimizing administrative complexities.
Reimbursements are strategically determined based on factors such as the lowest-cost silver plan available in the employee's area. Liferaft collaborates with business leadership to customize budgets according to variables like age and state, ensuring a well-balanced approach that benefits both employees and the employer.
HRA reimbursements offer significant tax advantages for both employers and employees. Employers can deduct reimbursements as a business expense, leading to tax savings. Employees receive tax-free HRA reimbursements, meaning they don't need to report them as taxable income, resulting in additional financial benefits.
Our team knows the ins and outs of the health insurance marketplace and will guide you towards the solution that make the most sense for your business and your team. Come with questions! Our experts are happy to dig into the details to get you the clarity you need.
During the call, Liferaft will run a cost-benefit analysis on your company's current healthcare spending and show you different ways you can save—without sacrificing plan quality. After your consult, Liferaft will design a unique plan for your employee's health insurance, including suggested plans and accounts, plan policy documents, and the annual budget.
