Medical Expense Reimbursement Program J. E. Smith Services, Inc. Effective July 1, 2023
Effective July 1, 2023 , the Company is offering a Medical Expense Reimbursement Program (aka Health Reimbursement Arrangement) to employees who are enrolled in the group health plan. The purpose of the HRA is to provide reimbursement for qualified medical expenses that are not paid by the insurance carrier. An HRA is an arrangement under which an employer establishes separate bookkeeping accounts for employees to pay for certain medical insurance coverage and welfare benefits. To the extent that an HRA is an employer-provided accident or health plan, coverage and reimbursements under the HRA of medical care expenses of an employee and his or her spouse and dependents are generally excludable from the employee’s gross income. HRA benefits must be paid for solely by the employer and not provided pursuant to a salary reduction contribution. Reimbursements are made on a tax-free basis for qualified medical expenses. Qualified medical expenses are defined as follows:
Carrier-approved medical charges applied towards the member’s in-network deductible
How it works:
Enrolled as:
Plan Deductible Member Responsibility
Company Will Reimburse
The first $2,500 in-network deductible
Employee Only $6,000
$3,500 in-network deductible
The first $2,500 in-network deductible per member, family maximum of $5,000
$3,500 in-network deductible per member, family maximum of $7,000
$6,000/member $12,000/family
Employee Plus Dependents
The plan year begins July 1, 2023 , and ends June 30, 2024 .
This program is being administered by Benefit Design Specialists (BDS). Prior to the beginning of the plan year, BDS will provide further information (plan document, summary plan description, claim form, claim submission instruction).
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