Employers using a QSEHRA or ICHRA through Take Command can be confident that reimbursement requests have been reviewed and verified before reimbursement amounts appear on their monthly reimbursement statement.
How HRA reimbursements work
A Health Reimbursement Arrangement (HRA) is a reimbursement-based benefit. Employees pay for eligible health insurance premiums or qualified medical expenses first, then request reimbursement through Take Command.
Employers only reimburse approved expenses that have been submitted and verified through the HRA platform.
What is an allowance?
The allowance amount you set is the maximum reimbursement available to an employee each month. It is not the amount you automatically pay.
Employees must submit eligible expenses before reimbursement occurs.
For example:
Monthly allowance: $500
Approved expenses submitted: $300
The reimbursement amount would be $300, not the full $500 allowance.
What does it mean when an employee submits a reimbursement request?
Before a reimbursement appears on your monthly statement:
The employee has already paid the expense out of pocket.
The employee submits documentation through Take Command.
Take Command reviews the documentation to confirm the expense is eligible under IRS rules and your HRA plan.
Approved expenses are included in the employee's reimbursement balance.
How does Take Command verify expenses?
Take Command reviews submitted documentation, such as:
Insurance premium invoices
Proof of payment
Explanation of Benefits (EOBs)
Receipts for eligible medical expenses
Only approved expenses are included on the reimbursement statement sent to employers.
How do I know what to reimburse?
Each month, Take Command provides a reimbursement statement showing the approved reimbursement amount for each employee.
The reimbursement amounts on the statement reflect:
The employee's available allowance
Approved healthcare expenses submitted for reimbursement
Any eligible unused allowance carried forward, if allowed by the plan
Because Take Command reviews submitted documentation before approving reimbursement requests, employers can rely on the monthly reimbursement statement when processing reimbursements.
Key takeaway
Employers do not need to independently verify employee medical expenses. Take Command reviews and approves reimbursement requests before they appear on the monthly reimbursement statement, ensuring reimbursements are for eligible healthcare expenses under the HRA.