Health Reimbursement Arrangement (HRA)

A Health Reimbursement Arrangement, or HRA, is an IRS-sanctioned program that allows employers to reimburse medical expenses incurred by participating employees and dependents, thereby creating a tax advantage to offset health care costs. HRAs are 100% funded by the employer and administered by a third party administrator (TPA) or plan service provider. With an HRA, employers reimburse employees for pre-determined eligible expenses - i.e., specified out-of-pocket expenses such as deductibles and co-pays. HRAs are flexible and customizable in design, and they are a great option for businesses who would like to provide more of a consumer-driven health plan which gives participants greater control over their health care benefits. HRA's are usually paired with high-deductible health plans which offer lower premiums than traditional health plans, and the HRA funding provides for more of the day-to-day non-preventive illnesses, injuries, and medical expenses.

Contact us today to set up a free consultation to see if an HRA would be the right fit for your business' insurance needs.