HRA Administration

The ABC Insurance Trust now has HRA Administration services, called DirectPay, available through Total Administrative Services Corporation (TASC) as a special service for ABC Members!


Commonly referred to as a Health Reimbursement Arrangement, DirectPay is an employer-paid reimbursement program for health care benefits. It allows employers to annually set aside a specific amount of money for employees to pay for health care expenses as defined by the plan. All employer contributions to the Plan are tax deductible to the employer, and tax-free to the employee.
With this plan, employers can switch to a less costly, high-deductible insurance plan. The amount of money saved by reduced premiums is used to fund the DirectPay account, which reimburses the employee for out-of-pocket health care expenses.
For the employee, choice is maintained and he or she is free to search for the best and most efficient health care. For the employer, DirectPay offers the ability to pay only for the services that are actually used. This distinctive fund management program allows employers to advance claim payments to employees before the full reimbursement amount is present in their account. DirectPay fronts the necessary funds to reimburse employee claims; not the employer!

How will your company benefit from DirectPay?

DirectPay offers employers and employees a win-win situation when it comes to saving money. By offering DirectPay, employers are able to realize a number of benefits

  • Savings.
  • Better Consumers.
  • Improved Employee Morale. The employer's expenditures for health care are visible and clear to employees.
  • Recruit and Retain Quality Employees.

One key solution to the rising costs of health care is to put more choices in the hands of the consumers. By doing this, employees search for the most effective and cost efficient care.

How will your employees benefit from DirectPay?

  • The Plan is 100% employer paid.
  • All contributions to the Plan are received tax free by the employee.
  • Employees have more control over their health care choices and become better health care consumers, saving everyone money.
  • More choices and more flexibility. You can customize the Plan according to employee needs.
  • Unused dollars can be carried over from year-to-year (dependent upon Plan design.)