How the HRA plan works

1. How the HRA plan works Your HRA is paid by Kadlec to “offset” your total deductible. Non-preventive medical expenses will be paid out of your HRA account, first. HRA funds cannot be used for prescription or vision costs. You can earn more HRA dollars by completing your “Wellness Requirements”. Once you exhaust your HRA dollars, you are responsible for paying the remainder of the total deductible. Your portion of the deductible is called the "bridge." When you earn more HRA dollars by completing your Wellness Requirements you reduce your “bridge” and end up paying less out of your pocket for deductible expenses.  After you have paid your bridge, medical expenses are covered at the appropriate coinsurance level, up to your out-of-pocket maximum. Preventive care is covered at 100% by the Plan with no “out of pocket cost” to you. Preventive care does not reduce your HRA dollars. 1 2 3 4 This example illustrates “Employee Only” coverage. Please refer to the plan comparison chart on the next page for other tiers. Without Completing Wellness Requirements With Completing Wellness Requirements Total Deductible = $2,000 Total Deductible = $2,000 Bridge (you pay) $1,250 HRA Pays First (Kadlec Pays) $500 HRA Pays First (Kadlec Pays) $750 Bridge (you pay) $1,500 Coinsurance The insurance plan pays: 90% at KRMC** 80% in-network** 60% Non Network** Coinsurance The insurance plan pays: 90% at KRMC** 80% in-network** 60% Non Network** Preventive Care is paid 100% by the insurance Plan and does not go towards your deductible or reduce your HRA. Preventive Care is paid 100% by the insurance Plan and does not go towards your deductible or reduce your HRA. Unused HRA dollars roll over from year-to-year to a maximum of $4,500. **Emergency Room claims are paid at 80%.