Health reimbursement arrangements give employers more control.

Reimburse the medical expenses of your employees with a health reimbursement arrangement.

Reimburse employee health expenses on your own terms.

A health reimbursement arrangement, or HRA, is a type of plan where an employer can reimburse qualified medical expenses incurred by employees. They could choose to let unused funds roll over into a new year or not. Because it’s an employer-owned account, the employee would not be able to take it with them should they leave the company.

Use with a health plan or to replace other benefits.

There are many practical applications for health reimbursement arrangements. If an employer wants to provide funds to reimburse for expenses applied to a deductible, for example, an HRA is a great way to do that. Or, they can offer an HRA in place of a traditional dental or vision insurance plan. HRAs can be designed to cover a wide range or a very narrow selection of medical expenses as set forth by the employer.

Employers may find cost savings.

Because the parameters of the HRA are specified by the employer, they’re able to control costs to some degree. The contributions made to the HRA are tax-deductible, which translates to savings. Additionally, employers may find that offering an HRA instead of other benefits could save money because only those who actually have expenses will use the money. There’s also less risk to an employer than putting funds into an HSA.

Is a health reimbursement arrangement a good fit for your business or organization? Contact us for more information.