Enhance Benefits and Save Money with a Health Reimbursement Arrangement (HRA)

As a church administrator, it can be challenging to offer a benefits package that covers health care costs without breaking your budget. A Health Reimbursement Arrangement (HRA) can help you balance pressures on your budget and provide quality benefits to your staff.

What is a health reimbursement arrangement?

An HRA is an employer-provided medical reimbursement plan. Employees are reimbursed tax-free for qualified medical expenses (for individuals, spouses and/or dependents) from this plan, which is funded solely by the employer.

How will your employees receive quality benefits?

• An HRA can help offset qualified out-of-pocket medical and dental expenses for employees.
• Employees can use an HRA alongside the benefits of a comprehensive health plan.
• Employees may be reimbursed tax-free.

How can your ministry save money?

• Your ministry can choose to offer a health plan with a higher deductible — different than a Qualified High Deductible Health Plan that is designed to be used with a Health Savings Account (HSA) — paying a lower monthly cost and utilizing the HRA to help employees with out-of-pocket expenses.
• HRA funds are only used for medical care your employees actually receive.
• You may avoid paying for coverage your employees don’t use.
• You decide how much to contribute to your employees’ HRA.
• You decide who pays for medical care first – you or your employee.

Flexibility in Employer and Employee Cost Split

Here are three examples of how qualified medical expenses could be split between the employer and employee for a health plan with a $2,000 deductible.

How do Health Reimbursement Arrangements differ from Health Savings Accounts?

Both HRAs and HSAs can help pay for qualified out-of-pocket medical expenses. Otherwise, the features of these plans have substantial differences.

HRA vs HSA Comparison

Cost-share with Your Employees

Implementing an HRA can help you save money by increasing employee awareness of medical costs. Because employees are actively involved in paying and being reimbursed for medical care, they are more likely to be savvy consumers as they shop for tests, procedures and other health-related expenses.

How to Set Up a Health Reimbursement Arrangement

If your ministry is ready to set up an HRA, you’ll need to decide how much to contribute annually and when you want the plan to begin. You’ll also need to develop plan documents and educate your employees about how the plan works. You may want to seek help from a licensed tax professional, attorney or benefits specialist to help ensure compliance for your HRA.

Help Your Employees Start Well. Stay Well. Finish Well.™

The heart of our mission at GuideStone^® has always been serving those who serve the Lord®. We come alongside you with biblically based health plans to help your pastors and church staff lead resilient lives as they advance the Kingdom of God. For more information, contact us at Insurance@GuideStone.org or 1-844-INS-GUIDE (1-844-467-4843), Monday through Friday, from 7 a.m. to 6 p.m. CT.

GuideStone welcomes the opportunity to share this general information. However, this information is not intended to be relied upon as legal advice.