- What is a Dental Reimbursement Arrangement?
- Why Would A Company Consider A DRA?
- How Does A DRA Work?
- Should An Employer Outsource The Administration?
A DRA is an arrangement that employers set up and completely fund to cover certain out of pocket, co-pays, co-insurance, and/or deductible expenses employees may incur associated with their dental expenses. It is an arrangement that employers promise to pay certain expenses on behalf of the employee to help reduce their cost of dental expenses, for themselves, their spouse, and dependent children.
Companies consider implementing a DRA as a way to reduce the cost of dental insurance premiums. By self insuring the dental plan, the premium to purchase a dental plan may be reduced considerably.
A DRA is designed to take the place of a company offering a fully insured dental plan. Traditional dental insurance plans have low co-pays, low co-insurance, and/or low deductibles, but for the most part you could be paying more in premiums then the actual benefit received. By implementing a DRA employers may be able to reduce their cost in providing the coverage. DRA’s are effective in managing employees’ dental expenses, but employees will be required to submit receipts or understand how to get reimbursed for an eligible expense covered by the DRA.
There are many factors to consider when deciding to outsource the administration of DRA’S. Though pricing is important, it isn’t the only consideration to focus on. The employees will be submitting their claims for dental expenses, and all of their personal information of what they had done will be on the letter. Many employees will find this information private and may not want it shared with their employers. By outsourcing, the employer can get the claims paid, and the employee can rest assured that their information is kept confidential. It is also important to consider a Third Party Administrator who is setup for paying these types of claims. Employees are going to need an efficient streamlined process to receive their deductible money. Failure to reimburse an employee expediently could result in the employee receiving additional charges from their provider. Employers should consider using a TPA who can offer debit card processing for reimbursing the DRA expenses. This would allow the employee to pay for their expenses directly to the provider without having to submit claims for reimbursement.
Outline of Services
Initial Setup / Installation / Take-Over
- Initial Consultation
- Suggested Legal Documents
- Interface With Existing Broker / Benefit Consultant
- Setting Up Of The Systems
Whether you have a DRA program or not, HR Concepts will take the time necessary to analyze and develop the right DRA program to fit your company’s budget and benefit needs. We will integrate with your existing benefit programs and implement our procedures, which you customize, to keep your employees satisfied.
Whether it is a new plan or take-over, HR Concepts will provide you with suggested plan documents, summary plan description, and corporate resolution.
After we have analyzed your current Dental Insurance design, HR Concepts will interface with your existing broker / benefit consultant to design the perfect DRA for your group.
In order to process the claims efficiently and accurately, HR Concepts, along with your input, will design the best procedures in order to manage claims. Your DRA plan design and outline of benefits will be inputted into our systems and if your company chooses to utilize the debit card for payment of DRA, the cards will be ordered and programmed.
- Enrollment Forms / Materials
- Enrollment Meetings
- Claim Forms
HR Concepts will provide you with a customized outline of Dental Plan Letter and enrollment brochure that will be given to the employees during the enrollment process.
Upon the initial setup or takeover, HR Concepts will provide enrollment meetings and education sessions to introduce the DRA to the employees. After this initial time, HR Concepts will conduct enrollment meetings for employees annually and when there is a significant amount of new hires.
If employees decide to not use the DRA Debit card, or for expenses not covered by the card, HR Concepts will provide claims forms that can be submitted for reimbursement from the account.
On-Going Administration Services
- Daily Claims Administration
HR Concepts provides employers with a DRA Debit card for each employee. These cards are considered Visa cards; however, they can only be used at predefined locations. If an expense cannot be put through on the card, then the employee can submit this claim by mailing, faxing, emailing, or dropping it off to HR Concepts. Upon receipt, the claim will be processed and a check will be dispensed.
- Online Employee Account Balances
- Online Employer Account Statuses
Employees will have access to checking their balances of their DRA accounts online. They will also be allowed to download claim forms off of our website.
Employers will have access to periodic plan activity and employee’s account balances via the web or by calling HR Concepts.