HRA Design Optimizer

Model HRA funding scenarios, estimate net employer savings, and test HSA compatibility.

Created by Corry Hull, REBC®, CSFS® for Employer Benefits IQ.

1.How well-defined is your HRA design type (deductible-gap, coinsurance, first-dollar, post-deductible, limited-purpose)?

HRA design type determines HSA compatibility and employee cost exposure.

2.How thoroughly have you tested your HRA design for HSA compatibility if employees are enrolled in an HSA-qualified HDHP?

Only limited-purpose and post-deductible HRAs are compatible with HSA eligibility.

3.How well does your HRA funding level reflect the actual deductible gap between your current and alternative plan?

HRA funding should bridge the deductible gap to make the HDHP financially equivalent for average utilizers.

4.How effectively is your HRA administered, including claims substantiation, rollover rules, and COBRA continuation?

HRAs are subject to ERISA and require a written plan document, SPD, and proper claims administration.

5.How well do employees understand how to use their HRA, what expenses are eligible, and how to submit claims?

Low HRA utilization often reflects poor communication, not low healthcare needs.

Calculator

HRA Funding Model

Current monthly premium / employee ($)

Alternative (higher-deductible) premium ($)

Enrolled employees

Expected HRA utilization (%)

Max annual HRA / employee ($)

Model assumes uniform utilization. Production should separately model deductible-gap, coinsurance, first-dollar, post-deductible, limited-purpose, and retiree-only designs. Flag whether the HRA design is compatible with HSA eligibility.

This tool provides educational decision support only. Results are not legal, tax, actuarial, or insurance advice. Validate all outputs against current plan documents, applicable law, and qualified professional guidance. Scoring version 1.0 · Reference year 2026.