We call our HRA “The Dovetail Plan”
The practical application is that installing an HRA through TPA Systems Inc. will significantly reduce an employer’s overall employee health care costs in almost all cases, by “dovetailing” the HRA in combination with a high deductible health plan.
Here is an example of how an employer can calculate their premium savings with a Dovetail Plan.
Raise Deductible
The employer compares their total current health insurance costs against what the cost would be with a high deductible health plan (as an example, we'll assume it is raised by $2,000).
Calculate Costs
The employer calculates how much it will cost to "make good" (fund) on the $2,000 of additional financial exposure that he has created for each of his covered employees and dependents.
Set Up HRA
The employer then installs an HRA to fund this value on a monthly basis. (Hint: this cost can be calculated with a high degree of precision, and will be dramatically lower than the $2,000 promised).
Compare Costs
The employer adds the monthly cost of his new plan, along with the cost of funding claims and administration fees, and compares that sum against what his health plan was costing before the HRA.
WANT TO SEE REAL SAVINGS?
Real Employers
9 Covered Employees, 15 Total Covered Individuals
Annual Savings $52,000 (27.9%)
Mobile users rotate your device or swipe right to left to see entire table.
Plan Type(s) | Details of Coverage | Annual Costs |
PRE-HRA HEALTH PLAN SKETCH | $500 deductible, 90% thereafter to 10K, then 100% $20 doctor copay, 10/30/50 drug card | $186,000 |
POST-HRA HEALTH PLAN SKETCH | $5,000 annual deductible, 100% coverage thereafter $20/$40 co-pay for physicians 10/35/55/25% drug card | $121,000 |
HRA | Reimburses last $4,500 of employee deductible | $1,000 in annual fees, $12,000 in projected HRA funding, total $13,000 |
POST HRA HEALTH PLAN AND HRA COMBINED | $500 annual deductible, 100% coverage thereafter $20/$40 co-pay for physicians 10/35/55/25% drug card | $134,000 |
15 Covered Employees, 15 Total Covered Individuals
Annual Savings $15,527 (17.2%)
Mobile users rotate your device or swipe right to left to see entire table.
Plan Type(s) | Details of Coverage | Annual Costs |
PRE-HRA HEALTH PLAN SKETCH | $4,000 deductible, 100% thereafter, $25 doctor copay, 10/40/60 drug card | $90,240 |
POST-HRA HEALTH PLAN SKETCH | $5,000 annual deductible, 100% coverage thereafter, HSA compatible, no co-pay feature for doctors and RX | $61,632 |
HRA | Reimburses first $2,000 of employee deductible, includes doctors visits & RX | $1,080 in annual fees, $12,000 in projected HRA funding, total $13,080 |
POST HRA HEALTH PLAN AND HRA COMBINED | HRA pays first $2,000, employee pays the next $3,000, insurance company pays 100% thereafter | $74,712 |
HRA FAQs
Dovetail HRAs Are Our Specialty
HRAs are a great way to help employers save money, while helping employees meet their financial and well-being goals. But like many employee benefit programs, they come with governmental regulations and compliance requirements. With years of industry experience, we ensure your plan is compliant while also advising on design, funding, and other areas of expertise needed to maximize your savings and flexible benefit program(s).
HRA FAQs
The specific expenses deemed reimbursable are stated within Section 213(d) of the Internal Revenue Code. Click here for an exhaustive list.
If the employer wants to reimburse expenses on a first-dollar basis, TPAS can provide covered individuals with a pre-programmed, "smart" debit card. These debit cards will only permit the covered person to apply available benefits to expenses approved by the employer.
Yes, TPAS can administer reimbursements after the fact according to almost any reimbursement schedule that the employer can design. To ensure that the employer is fulfilling his obligation with as few dollars as possible, TPAS can reimburse against an explanation of benefits from the health insurance company, provided by the covered individual.
Yes, we offer a variety of different claim funding arrangements to employers, as well as the ability to design and administer just about any plan that an employer can think of, no matter how unusual it might be.
Yes. The employees and dependents of this group are now covered under two separate benefits: one administered by the insurance company, and one administered by TPA Systems Inc. (TPAS). However, the value of the two benefits together often exceeds the value of the previous, more expensive health plan!
Covered individuals now possess two ID cards - one for each set of benefits.
TESTIMONIALS
What Our Clients Say
Exceeds Expectations
Exceptional service! We have used TPA Systems for years and they continue exceeding our expectations for customer service, timeliness, and creative solutions for our employee benefits. Our law firm wanted to cut costs and Stacey showed us HRA, HSA and LFSA solutions which reduce benefits costs for the law firm and maximize tax savings for the firm and our employees.
Makes Life Easier
The way an employer knows whether its HRA/FSA administrator is doing its job is that you never hear any complaints from your employees. TPA Systems shines in this regard. TPA Systems, you have been a pleasure to work with over the past few years. You make my life easier!
Works Flawlessly
For the better part of 15 years, Third Party Administrators Systems (TPA Systems) has provided Bay City Gas with professional services related to administering both our group health insurance plan and our Health Reimbursement Account (HRA). The HRA plan has worked flawlessly, both on the users’ side and on the administrative side. We highly recommend TPA Systems for any entity in need of these services.
Knows What They Are Doing
Stacey Merritt and his staff are the best to work with. Very efficient! The reimbursements are always within 7 days of receiving the request. Stacey is very quick to respond to any questions I might have. They always give you the option to do your own reports or they will do them. I personally let them do my state reports. Stacey and his team know what they are doing!!!! I will continue to use this company for as long as our city offers this program to its employees.
Stood the Test of Time
Our law firm has had many carriers and vendors providing and administering employee benefits over the years, but the one company we do business with that has stood the test of time is TPA Systems Inc. Since we first installed our cafeteria plan many years ago, TPAS has provided excellent, prompt service to both our staff at the administration level and our employees at the consumer level. We highly recommend TPAS.
Prefers Us To Other TPAs
Our firm has used TPA Systems, Inc. for our H.R.A./H.S.A. benefit administration for fifteen years and has yet to receive a negative comment from any of our clients. When preparing a presentation, TPA Systems’ attention to detail is impeccable and professionalism is unquestioned. The latter is displayed during employee enrollment meetings which involve audience participation. For these reasons I do not entertain solicitations from other third-party administrators.
Highly Recommends Us
I have been working with Stacey Merritt and TPA Systems, Inc. over the past 9 years offering HRA, HSA, POP Plan, and Flexible Spending Accounts to my employee benefit customers in Houston, Texas. My customers and I have been extremely pleased with their highly professional and prompt service and would highly recommend Stacey and TPA Systems, Inc. to both benefits professionals and employers.
We Are A Beacon of Light
As an insurance broker, I am constantly tasked with finding a solution to the ever-increasing cost of health insurance and higher deductibles for employees. Stacey Merritt of TPA Systems has been a beacon of light for me, and his service, knowledge and expertise has helped my employer groups keep a consistent plan while containing cost. TPA Systems delivers HRA, HSA, FSA, and COBRA administration with ease, affordability, and excellent turnaround time. Of all the arrows in my quiver, TPA Systems may be one of the sharpest.
A Great Experience
I have known Stacey Merritt for over 35 years and have been doing business with his firm for 14+. His knowledge of the third party administration business is top-notch. My experience with TPA Systems Inc. has been nothing short of great! I would highly urge you to consider TPA Systems for any and all things pertaining to HRA, HSA, FSA, and plan documents!
Appreciates Accuracy, Quick Response and Help Getting Business
Again, this renewal season it was consistent customer feedback on the service from and ease of doing business with TPA Systems. As the broker I appreciate the accuracy and quick response to questions. Thank you for helping us get new sales and keep business.
Excels in Designing and Implementing Cost Saving Plans
I have worked with Stacey Merritt at TPA Systems for many years. Stacey has always offered the highest level of customer care, but where he truly excels is in designing and implementing plans that stretch my clients’ benefit budget while keeping employees satisfied. Many of my clients have utilized TPA Systems plans for years. I’ve simply never had a client ask for another administrator.
A True Asset
Stacey has built a very successful TPA because of his passion to help brokers, advisors, and employer groups. I haven’t met a more knowledgeable person regarding HSA, HRA, and FSA compliance and execution. Stacey is a true asset to my clients, and I’m always looking for more opportunities to work with him.
