Funded HRAs to Help Pay for Healthcare

The tax-free account that lets employers contribute dollars for employees to keep and use to cover medical expenses.

How YourWay HRAs Help

We help design plans perfect for employers and their diverse teams.

A YourWay Funded Health Reimbursement Arrangement is a great tax-efficient way for employers to enrich traditional group health plan offerings with additional in-service or post-separation benefits. An HRA helps employees save for and cover eligible out-of-pocket medical expenses with pre-tax dollars.

What can a YourWay HRA do for your organization?
  • YourWay HRAs can help employers limit future increases in plan costs and empower employees as improved health care consumers.
  • Add flexibility and control by providing an additional savings vehicle able to cover reimbursement-qualified out-of-pocket expenses.
  • YourWay HRAs can be offered alongside an existing group health plan or as a stand-alone, defined-contribution, post-separation benefit.
  • Medicare can cover some, but not all, healthcare expenses during retirement. A YourWay post-separation HRA helps your former employees pay for these out-of-pocket expenses with funds contributed by their employer.
  • HRA reimbursements are deductible as a business expense and are excluded from an employee’s taxable income.
  • Allows you to determine when funds are available to employees, such as only when an employee has met defined age or vesting requirements and separated from service. Until then, contributed pre-tax funds accumulate and are invested, adding a unique retirement-savings component to any existing health benefit offering.
Great Uses of HRAs

Replace lump sum payments with a tax-free solution.

When separating from service, many governmental employees and retirees are entitled to large, lump sums of pay, which can result in large tax obligations. To defer this tax obligation, these dollars are often contributed via Special Pay Plans (SPP), such as a 401(a) or 403(b). In contrast, contributing these funds into a YourWay Funded Health Reimbursement Arrangement (HRA) completely removes the tax burden from both the employer and employee, making it the modern way to fund sick leave cashouts, retiree cashouts, and severance.

Retiree with an SPP
Retiree with a YourWay HRA
Five-Year Health-Related Expenses ($450 per Month) $27,000 $27,000
Federal & State* Income Tax 25% 25%
Withdrawal Needed $36,000 $27,000
Five-Year Tax Savings
$0
$9,000

*State income tax rates vary and may not apply altogether in some states.

More and more employers are adding a funded HRA as an additional elective or mandatory tax-advantaged funding option for large annual or termination payments.

See why more public-sector employer groups choose OneBridge to offer Funded HRAs
Enhance Your Existing Benefits Package

Support in-service employees with pre-tax contributions.

Out-of-pocket expenses arise regardless of the type of group medical plan you make available to employees. The YourWay HRA offers employers an additional benefit in-service employees can use to offset out-of-pocket expenses such as co-pays, prescriptions, and even dependent care costs. OneBridge also makes it easy to pay for those qualified health-related expenses when they’re due as the YourWay HRA comes with our “Smart” OneBridge Benefits Card. For in-service employees who don’t need to use the funds today, they can accrue and invest the HRA contributions to cover future medical expenses.

Mitigate Rate Liabilities

Provide retirees with funds to pay for post-employment insurance.

Many organizations across the country offer or are required by collective bargaining, to maintain group medical coverage for eligible retirees. plans. The frequency and level of medical care needs for retirees can adversely impact the plan’s experience rating, causing an increase in premium costs for the employer. Instead of managing annual cost increases, the YourWay HRA mitigates the experience rating for employers by replacing retirees’ participation in group plans with defined contributions retirees can use to pay for their own individual medical expenses and premiums, even Medicare.

Finding YourWay

Let the largest Funded HRA administrator in the country help you identify the right plan for your business.

YourWay HRA contributions and reimbursements are excluded from federal and state income taxes, which can result in significant savings for participants. In addition, governmental or public sector employees can invest unused HRA balances on a tax-free basis. Depending on who you talk to, these specific types of HRAs may be referred to differently—such as Funded HRAs, Post-Employment Health Accounts, Retirement Health Savings Accounts, Integrated HRA Accounts, Defined Contribution HRA Accounts, or VEBA Accounts. As the largest Funded HRA administrator in the country, OneBridge Benefits can service them all through a variety of available plan designs and contribution funding sources.

HRA Plan Designs

  • Integrated/Supplemental Group HRA
  • Retiree/Post-separation only HRA
  • Limited benefits (e.g., dental and vision only)
  • Post-deductible HRA (for has coordination)
  • And more

HRA Funding Sources

  • Employer flat dollar contributions
  • Mandatory group salary reductions
  • Sick, vacation, or PTO cashouts
  • Wellness Incentives
  • Excess benefit dollars
  • Embedded contributions based on health plan selection
  • And more

When it comes to YourWay questions, we have the answers.

Is a VEBA an HRA?

VEBA, which stands for “Voluntary Employees Beneficiary Association,” is one type of tax-exempt trust established by governmental employers to hold the contributions or plan assets of qualified health and welfare benefit plans, including HRAs. The HRA, on the other hand, is a type of tax-exempt benefit plan that allows employers to contribute pre-tax dollars that employees can use to cover qualified, out-of-pocket medical expenses. The innovative YourWay HRA leverages VEBAs and other forms of tax-exempt trusts to deliver a Funded HRA model that benefits both employers and employees.

Which is best: Section 115 Trust or VEBA?

What is the best trust model to you for your HRA plan? The YourWay HRA service model can accommodate a variety of trust options, including an IRC Section 115 trust for governmental employers, a tax-exempt VEBA trust, commonly used for private-sector employers, Taft-Hartley plans, and also some governmental groups, or even a taxable trust. The innovative OneBridge plan and trust design team will help you identify and adopt the best plan and trust design to fit your needs and tax situation.

Can you use an HRA as a tax-free retirement fund vehicle?

YourWay HRA contributions are held in a tax-exempt trust and offer employers and employees a payroll FICA tax savings of up to 7.65%. For public sector employees, account balances can be invested in a suite of low-expense investment options to grow tax-free. Unlike retirement plans, there are no tax consequences on HRA account withdrawals so long as those funds are used to pay for qualified healthcare expenses and/or premiums.

Speaking of retirement, see how a YourWay Funded HRA can completely remove the tax burden from both employer and employee in cases of sick leave, retiree cashouts, and severance pay.

See Our HRA in Action

Services that come with your plans and stay with you.

Backed by our first-of-its-kind administration platform, as well as HRA and FSA plan design expertise, OneBridge Benefits powers the YourWay HRA, handling everything from initial contribution and plan design analysis to ongoing management, compliance, and regulatory reporting. As a trusted benefit administrator currently servicing over 210,000 participants with $2B+ in health account savings across the country, OneBridge is the experienced partner more employers and their brokers rely on for simple solutions to the most complex health benefit issues.

Benefit Portability

Any unused YourWay HRA funds are portable and can be used for future health expenses—providing a lifelong healthcare benefit.

Online Portal & Mobile App

The YourWay HRA comes with the industry’s first and only technology solution that supports recordkeeping and reconciliation for employers, and allows employees to receive real-time claims statuses, view balances, and more!

White-Glove Customer Care

The positive experiences created by our first-of-its-kind technology are complemented by our outstanding YourWay Customer Care specialists who welcome opportunities to guide and inform participants at every turn.

Stackable FSA

OneBridge allows businesses to bundle more benefits by stacking a Flexible Spending Account (FSA) on top of the YourWay HRA plan, thereby increasing tax savings.

Integrated Debit Card

YourWay HRA and FSA participants receive a single, stacked debit card that is smart enough to allow participants to conveniently pay for qualified out-of-pocket medical expenses like prescriptions, office copays, and, in some cases, dependent care costs.

HRA Council

Our HRA expertise
leads the way.

Sheilla Jones, our VP of Product Design, serves on the Board of Directors of the HRA Council, Inc., an HRA and ICHRA advocacy organization recently founded by a group of insurance carriers, benefits consultants, employers, and HRA administrators. OneBridge was instrumental in the formation of the HRA Council and is one of the founding members. Head to hracouncil.org for more on how the Council is shaping the future of health benefits.

What are the steps to onboarding YourWay HRA?

Complete the form below to learn how you can seamlessly onboard a YourWay HRA.

1

Schedule a meeting to see if our YourWay HRA is right for you.

We'll begin by walking you through the platform and introducing you to our team.
2

Discuss class and contribution options and finalize your Plan Design.

After confirmation of moving forward, we'll discuss class and contribution options and finalize your Plan Design.
3

Engage OneBridge and formally adopt the Plan.

At this stage, you'll approve and sign all required documents, including an Administrative Services Agreement, HIPAA Business Associate Agreement, Plan Adoption Agreement, and Plan Sponsor Trust Agreement.
4

Launch!

We’ll enroll your participants and get them set up with an HRA!

Explore the YourWayHRA and empower employees to save and plan for current and future out-of-pocket expenses.

If you’re an employer looking for a way to enhance your benefit offering, support your employees’ out-of-pocket medical expenses, and gain a competitive edge when it comes to teambuilding, you’re in the right place. Start offering health benefits the best way possible—YourWay.

Schedule a Meeting