HRA Plan Details

Caveat

Nothing in this document is tax, legal, or financial advice, sorry.

Overview

At Free Law Project, we use an HRA (health reimbursement arrangement) to provide insurance. Our HRA is administered through Thatch. This pre-tax benefit allows you to select a healthcare plan through your state marketplace and be reimbursed for an amount up to the cost of the median gold-tier plan avaliable in your state. Thatch pays for your premium and any additional approved medical expenses. If your premium is above your allowance amount, the remaining cost of your premium is deducted from your paycheck. This means our HRA operates very similarly to traditional group coverage which you might be more familiar with.

Eligibility

All full time US employees are eligible to receive this benefit, and are strongly encouraged to take advantage of it.

Benefit

Free Law Project has set an allowance for reimbursement for the state you live in. Once you're set up in Thatch, Thatch pays your premium each month, and any amount past your allowance is then deducted from your paycheck in Gusto. The allowance is unique to your state, and covers the monthly premium of the median gold-tier plan in your area.

For example, if the monthly premium in your area for the median gold plan is $500, you have a $500 allowance. If you choose to enroll in a lower cost plan, like a top silver-tier plan with a $400/month premium then the additional $100 in your allowance can be used for dental, vision, or additional approved medical expenses. And if you select a more expensive plan, like a platinum-tier plan for $700/month, then the additional $200 above your allowance amount would be deducted from your paycheck across the month.

This benefit only covers marketplace plans. You can shop for your plan and enroll using the Thatch platform.

If you already have a marketplace plan that you're happy with, you can submit a reimbursement request on Thatch for your premiums. The only thing to be aware of is that you have to remove any marketplace tax credits while using an HRA. You'll need to get those removed before you bring your plan into Thatch.

Learn more about your member allowance and how to use it on Thatch.

Getting Started as an Employee

You will receive an invite from Thatch to set up your account.

Once you've set up your account, you'll be able to shop for coverage, waive coverage, or request reimbursement on Thatch's platform

Form 1095-B

Form 1095-B serves as proof you and your dependents had qualifying health coverage (Minimum Essential Coverage) during the tax year. You don't need this form to file your federal taxes, but some states may require it to file your state return. To request a copy of your statement, email operations@free.law.

Q&A

Q: Why don't we do a standard group plan?

A: Because we have a small number of employees spread across many different states, it's extremely difficult for us to find a plan that will cover everyone. Reimbursing individual premiums is the best solution we have to make sure you can get health insurance in your state that meets your needs.

Q: Can my partner and/or children be covered by the HRA?

A: Free Law Project covers 100% of employee premiums and 75% of your partner and dependents' premiums. When registering on Thatch, you'll be able to see your updated allowance amount after inputting your dependents.

Q: I don't want to use this, I'm on my partner or parent's plan.

A: You can waive the benefit in the Thatch portal.

Q: I want to change my plan!

A: You can only change your plan during Open Enrollment (which happens at the end of the year) UNLESS you have entered a Special Enrollment Period through a qualifying life event.

Q: I have another question that isn't covered here.

A: Ask operations@free.law!

Version history

Past versions of this handbook can be found in the revision history of this page. Prior to that, revisions are in our old HR repo on GitHub.