The costs associated with fertility and reproductive health can be significant hurdles for many individuals and couples. Many group health plans offer limited coverage for fertility and reproductive treatments, meaning employees are forced to spend out-of-pocket for costly treatments. For businesses interested in increasing employee satisfaction, Health Reimbursement Arrangements (HRAs) can be a valuable tool in supporting employees' overall health and addressing these financial challenges.
In this blog, we explore the practical utilization of HRAs to cover a spectrum of fertility and reproductive expenses.
An HRA can be utilized for costs used for pregnancy prevention by covering medical expenses such as abortion, prescribed birth control pills, sterilization, and vasectomy procedures. These eligible expenses ensure that individuals can use their HRA funds to proactively manage their reproductive health, aligning with a comprehensive approach to family planning and pregnancy prevention.
Below, we review expenses you can include as eligible for employee reimbursement in your HRA plan. You do not need to cover all of these expenses, but employers often choose to have these expenses in HRA plans focused on fertility and reproductive healthcare.
An HRA can facilitate coverage for pregnancy and newborn care expenses, including breast pumps and supplies that aid lactation, fertility enhancement procedures, midwifery care, and doula services. These expenses contribute to the comprehensive assistance for individuals as they navigate the experiences of pregnancy and newborn care.
An HRA offers a means to cover transportation expenses related to medical care, encompassing essential trips for medical services. This includes fares for buses, taxis, trains, or planes, ambulance services, and out-of-pocket expenses like gas and oil when using a car for medical reasons. Moreover, the HRA provides a solution for the financial aspects of necessary medical transportation.
You can include in medical expenses amounts you pay for travel expenses to another city if the trip is primarily for, and essential to, receiving medical services.
Lodging: You can include up to $50 for each person per night. You can include lodging for a person traveling with the person receiving the medical care. For example, if a parent travels with a sick child, up to $100 per night can be included as a medical expense for lodging. Meals aren't included.
You can't include in medical expenses a trip or vacation taken merely for a change in environment, improvement of morale, or general improvement of health, even if the trip is made on the advice of a doctor.
Transportation: You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. You can include:
An HRA can cover medical expenses related to operations, encompassing legal operations that are not cosmetic surgery, surgeries in general, and laboratory fees integral to medical care. Additionally, HRA funds may be applied to cover transgender counseling or surgery, providing financial support for a range of essential medical interventions.
A Health Reimbursement Arrangement (HRA) is a benefit plan established by employers to assist employees in paying for medical expenses, including health insurance premiums or out-of-pocket costs that their health insurance plans do not fully cover.
ICHRAs and Standard HRAs do not have contribution limits. However, QSEHRAs and EBHRAs do have maximum limits. For 2024, the contribution limits for a QSEHRA are $6,150/year for individual coverage and $12,450/year for family coverage. The EBHRA has a maximum limit of $2,100 for 2024.
The treatment of unused HRA funds varies among employers. Some HRAs may allow for rollover of unused funds to the next plan year, while others may have a "use it or lose it" policy. The customization of the HRA is up to the employer and their businesses’ specific needs.
HRAs can cover various medical expenses, including doctor visits, prescription medications, dental care, vision care, fertility treatments, and certain over-the-counter items. The specific covered expenses depend on the terms of the employer's HRA plan.
The compatibility of HRAs with other health benefits depends on the specific terms of each plan. Some employers offer HRAs alongside FSAs or HSAs, allowing employees to maximize their healthcare-related tax 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.
