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Blue By Design - Health Reimbursement Arrangement

Flexible Spending Account (FSA) – For Businesses with 5 or more employees

Blue by Design HRA is a plan that lets employees control how their health care dollars are spent. The plan combines a high deductible insurance plan with an HRA funded by the employer.

How the Blue by Design HRA works

Consider the example using a Comprehensive Major Medical plan with a $1,000 deductible, $1,000 coinsurance:

• The employer puts $500 in an HRA. This money can be used to pay for covered health services such as, hospital care, office visits, prescription drugs and other eligible services under the health insurance program. The employee pays no taxes on the money that goes into the HRA. In addition, the employee doesn’t pay for any covered health care expenses until the employee uses all of the money in the HRA.
• After the $500 in the employer-funded HRA is spent, the employee pays for the next $500 in medical expenses and prescription drugs until the remainder of the health plan’s $1,000 deductible is met.
• Once the $1,000 deductible is met, the employee pays a coinsurance percentage for covered medical and prescription drug expenses up to the health insurance program’s $1,000 coinsurance maximum. When that $1,000 amount is met, the plan pays 100 percent of covered services for the remainder of the benefit period.

Blue by Design HRA offers:

• Tax savings
• Reduced premium costs with a higher deductible program
• Employees gain a greater appreciation for the value of health care benefits
• Employees have more control over their personal health care choices

More Information

• Frequently Asked Questions: Review the answers to some common questions about health reimbursement arrangements.
• Phone: Learn more about the features of Blue by Design by calling 291-4303 in Topeka or toll-free at 1-800-874-1823.
• E-mail: Send a note to our Blue by Design representative. Please provide a daytime phone number in your message indicating where and when you can be reached. All requests will be responded to via phone within two business days.