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Monday, 15 July 2013 14:45

SBCs Required for HRAs

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Many of our clients have Health Reimbursement Arrangements (HRAs) that help them structure a more creative benefit plan for their employees, often achieving significant savings.

But, many employers are not aware that the new requirement for the Federal Summary of Benefits and Coverage (SBC) form applies to these plans as well, as HRAs are considered group health plans just like your accompanying insurance plan. This requirement has been in place with all plan years starting after 9/23/12.

An SBC is required for:

  • Stand-alone HRAs
  • Premium-only HRAs
  • HRA plans that are integrated with another group health plan (unless the HRA has been included in the SBC distribution by the other group health plan)
  • Grandfathered plans
  • ERISA and non-ERISA HRAs sponsored by a government employer
  • Church HRA plans

If you have not already prepared an SBC for your HRA plan, it is time to act! We suggest you call your third party vendor to discuss the options available and the cost involved (if any) for preparing the SBC so that you can distribute it to your employees.

It has been our experience that some vendors are charging up to $1,000 fee for the preparation of the HRA SBC. If you feel this is an unreasonable amount of money to pay, we would be happy to connect you with an HRA administrator that will prepare the SCBC for no additional cost.

Please note some HRA plans are exempt:

  • HRAs that are set up to only reimburse dental and vision
  • Plans that have a maximum that does not exceed $500, and
  • Retiree-only plans.

If you would like to know more about the SBC requirements for the HRA, or need guidance on the vendor fees, please call Kristen, Tonya or Amy at (303) 369-3200, or This email address is being protected from spambots. You need JavaScript enabled to view it.!

Read 6454 times Last modified on Monday, 14 September 2020 20:39
Amy De Lorenzo

Amy Johnston is an Account Manager with extensive experience working with both large and small employers as a broker.  In addition to five years of broker experience prior to joining Fall River, she also brings eight years of insurance carrier expertise.  Amy is an expert on ERISA, the Affordable Care Act, and other compliance issues.

Ms. Johnston received a Bachelor of Arts degree in Communications from Colorado State University. She is a Colorado native from Steamboat Springs, and loves spending time in the mountains with her husband, two children, and Tucker the cocker spaniel. She enjoys snowshoeing, hiking, and philanthropy work to promote education.