Forma announces new Specialty Health Reimbursement Arrangement
The life benefits company introduces a Specialty HRA Abortion-Related Medical Travel and Accommodations Program to support customers and employees.
SAN FRANCISCO, July 8, 2022 — Forma, the life benefits platform, today announced that it will offer a Specialty Health Reimbursement Arrangement (HRA) solution in addition to its current benefits offerings. The newly launched Specialty HRA is a defined contribution, account-based plan aimed to cover the cost of specific abortion and abortion medical travel-related health expenses not adequately covered by group medical plans.
In response to the Supreme Court decision to overturn Roe vs. Wade, many companies are looking for solutions that support employees' reproductive health care. Forma’s Specialty HRA Medical Travel Accommodations Program answers this market need. This newly launched program offers a solution as part of employer-sponsored benefits programs that can be used to pay for eligible tax-free medical expenses, such as transportation, lodging, and meals, each with detailed eligibility parameters.
“Reproductive care is deeply personal and is a part of core healthcare,” said Jason Fan, CEO and co-founder at Forma. “Forma was founded on the ideals of giving people the freedom of choice. The notion that a reproductive health care decision is determined by the government instead of between the doctors and the individuals is deeply disturbing. All people should have the ability to make their own choices about their body and their future. In order to support that, we have added a Specialty HRA solution focused on medical travel and accommodation to our health benefit programs to be used to help cover expenses for those seeking out-of-state abortion services.”
With Forma’s Specialty HRA, employers may present the Medical Travel Accommodations Program as one integrated arrangement but will need to keep in mind the technical distinction between medical and non-medical reimbursements, plan requirements, and taxability. The Specialty HRA must be employer funded and only available to employees enrolled in a group medical plan. It’s important to note that Specialty HRAs have specific eligibility and compliance requirements for the program. Forma is HIPAA compliant and follows the obligation for being a third-party administrator to manage HRA operations and compliance.
Forma provides implementation and administration services for the Specialty HRA Medical Travel and Accommodations Program which includes the program design, the human resources information system (HRIS) demographic file for program eligibility to note employees enrolled in group medical plans, the secure file transfer protocol (SFTP) taxability file sent to employers, plan documents, and complimentary non-discrimination testing.
The flexible life benefits company has consistently been at the forefront of responding to critical world events. Forma was one of the first benefit vendors to set up emergency relief accounts to help employees navigate the devastation from storms like Sandy and Katrina. The company was also the first to help assist employees during the wildfires in Colorado, California, and Oregon. And when COVID-19 hit US shores, the team responded just as quickly.
For more information, visit www.joinforma.com/life-benefits.
Forma (formerly Twic) is a life benefits platform that enables modern companies to design and scale flexible, global benefits programs with options that fit employees’ lives, from health and wellbeing to lifestyle – and beyond. Founded in 2017 by Jason Fan, chief executive officer, and Max Hsieh, chief technology officer, the company works with hundreds of industry-leading customers, including Zoom, Twitch, Stripe, Allbirds, Splunk, Palo Alto Networks, Dropbox, Lululemon and Block, to revolutionize their HR programs. With support from investors like Ribbit Capital, Emergence Capital, Stripe, Upside Partnership, Designer Fund, and AngelPad, Forma is building the future of flexible benefits. For more information, visit joinforma.com.
You can read the press release here.