A self-funded cash pay health plan can and should be funded through a Health Reimbursement Arrangement (HRA). But how does a plan sponsor protect against overdrafts?
HRA overdraft protection can be placed through several methods:
- Casualty insurance coverage
- Instant credit limits issued by a financial institution or hedge fund
- Annual Aggregate (non-insured) stop loss plan document provision
A smart plan sponsor knows how to fund and structure plan strategies properly leaving less chance of overdrafts. They know there’s no such thing as a Million Dollar claim and they know there is less than a 1% chance they will ever need to trigger overdraft protection.
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