Jun 11, 2025
Big news!
Effective immediately, UnitedHealthcare will no longer restrict the use of external Health Reimbursement Arrangements (HRAs) with its Level Funded Medical plans, including Surest Level Funded Medical plans. This change provides greater flexibility for employers and plan participants.
Note that this change does not include gap or supplemental plans. It only applies to HRAs.
There is no restriction on plan designs an HRA can be attached to. UnitedHealthcare will not be asking employers if they are utilizing an HRA, and they will not be administering any HRAs themselves.
A broker communication will be released in the near future. There will not be a member communication because UnitedHealthcare cannot identify members who have an HRA.
UHC Rewards redemption screens will be updated regarding the potential tax implications described below.
Important Tax Considerations
When pairing an HRA with other reimbursement accounts, such as UnitedHealthcare's Health Incentive Account (HIA), it is crucial to understand the associated tax implications. For example, members enrolled in a UHC Level Funded PPO without a Health Savings Account (HSA) may receive HIA funds through the UHC Rewards program. They cannot double dip from their HIA and HRA for the same expense.
"Double dipping" is seeking reimbursement for the same medical expense from multiple tax-advantaged accounts, or deducting an already-reimbursed expense on your tax return. It is not allowed under IRS rules and regulations.
Please note that neither UnitedHealthcare nor Amwins Connect can provide specific tax or legal advice. If you have further questions or concerns about the tax or legal implications, please consult with legal counsel or tax professionals before any decisions or actions are made/carried out.
For further questions regarding this update, contact your Amwins Connect Regional Sales Manager.
