Common Questions
Is the Array solution considered a group plan?
Yes. The HRA component of our solution is considered a group plan subject to ERISA laws. However, the individual health
policies are not part of the group plan.
Can my company use payments made to the Array HRA as a tax deduction?
Yes. Companies can deduct all HRA payments, and HRA contributions are not considered part of employee compensation, so no
payroll or income taxes are paid on the contributions.
How are individual health insurance renewals handled?
Using Array's software, your employees manage their own renewals, and employees can apply for new coverage anytime through
Array.
Can employees use their health insurance premium payments as tax deductions?
Individual health insurance premiums generally are not tax deductible for employees.
If employees choose not to buy health insurance, can they use their HRA dollars for other medical expenses?
Yes. Our HRA reimburses for medical expenses listed in IRC Section
213(d).
Can employees contribute to the Array HRA?
No. Employees are not allowed to contribute money to the HRA.
Can employees use their Array HRA money to pay for the insurance premium of their spouse’s group medical plan?
Generally, no. If the spouse’s company has a Section 125 plan, HRA money cannot be used for the insurance premium of a spouse’s
plan.
Are company owners eligible to use the Array HRA?
Sole proprietors, partners, members of an LLC, and individuals owning more than 2% of an S-corporation are not eligible
for the HRA plan.
What happens when an employee leaves?
Employees can retain their personal health insurance even after leaving the company.
Is medical underwriting required?
Individual health insurance policies generally require medical underwriting. Unlike group medical insurance, all employees
applying for individual health insurance through Array’s application platform generally must answer questions about their
health. In Washington,
- All insurance carriers use the same health underwriting questionnaire.
- 92% of applicants are accepted.
- Denied applicants can buy health insurance through the Washington State Health Insurance Pool
(WSHIP).
- WSHIP plans cost 10-25% more than coverage in the private market.
What happens if coverage is denied for an employee?
If employees are denied, the carrier will refer them to the Washington State Health Insurance Pool (WSHIP) where they
generally are offered coverage regardless of medical condition. The Array HRA reimburses for WSHIP premiums. Array provides extensive
tools through its application platform to help denied employees apply for WSHIP coverage. Your insurance broker also can
aid denied employees with the WSHIP application process. At Array, we strive to ensure that all employees who wish to use their
HRA allowance for individual health insurance have a health insurance option.
Can employees purchase policies with Health Savings Accounts (HSAs)?
Not currently. Because benefits are offered through an HRA, employees cannot buy policies with HSAs.
Is insurance eligibility based on employee or company location?
Employees can use their HRA dollars for individual health insurance policies. Because these policies are a contract between
the employee and the insurance carrier, eligibility is based on the primary residence of the employee.
Are there regional restrictions on HRA eligibility?
No. An HRA is a federally regulated plan, so the HRA can be offered to employees in any state.
Contact Array Health today to learn more.
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