Employee Handbook

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Health

We realize that every employee is unique, so we've opted to provide all full-time employees with what's known as a health reimbursement arrangement (HRA). Why? Because they're awesome! In a nutshell, an HRA uses tax-free, 100% company provided funds to reimburse you for medical expenses incurred by you and your family. We primarily intend for it to cover monthly premiums, but it can also be used to reimburse a variety of out-of-pocket expenses.

What makes it so awesome?

Glad you asked, because there's a lot of benefits.

  • Flexibility. You have complete freedom to choose the coverage you need for you and your family. You're free to choose the perfect medical plan option with the right combination of deductibles, coverage, premiums, etc. You can also supplement that with dental, vision, or prescription insurance plans according to your needs.
  • Cost savings. Simply put, it's generally cheaper for someone to buy plans on the competitive individual market than it is for a company to buy the same plans for their employees. Plus, companies don't need to waste money providing coverage to all employees that only some employees need.
  • Covers out-of-pocket expenses. Unlike typical plans, HRAs can completely reimburse you for a multitude of other medical expenses, including coinsurance, copayments, deductibles, shots, eyeglasses, and quite a bit more.
  • Peace of mind. Since you purchase plans on the individual market, you won't lose coverage if your employment ends.

How it works

Qualified Small Employer Health Reimbursement Arrangements were enacted by Congress via the 21st Century Cures Act, and the regulations established there govern much of how our company's HRA works. Below are the monthly reimbursement contributions we've elected to provide to every full-time employee:

Classification Monthly contribution
Single employee (no spouse or dependents) $400/mo
Employee with family (has spouse and/or dependents) $800/mo

At the beginning of each month, Sparksuite will contribute the appropriate amount to each employee's HRA plan. Unused funds rollover from month-to-month, but will not rollover from one plan year to the next.

How to use the funds

You'll be mailed a debit card from our HRA provider, which you can use to pay for many types of medical expenses in person. It usually works at doctor's offices and places like CVS or Walgreens.

For online purchases, premium payments, or if you simply forgot to use your debit card, you can be reimbursed by submitting claims directly to our HRA provider. Reimbursements usually arrive in about a week or two.

Eligible expenses

For a complete list of eligible expenses, see the corresponding Google Sheet in the Google Drive folder shared with all employees. The spreadsheet also notes which claims may need supplemental documentation.

It's important to note that an HRA cannot be used to reimburse premiums for insurance plans not purchased on the individual market (e.g. a plan provided through another employer). The IRS considers this double dipping.