Health Reimbursement Arrangement (HRA)
HRA’s are an excellent way of keeping desired employee benefits and saving money. For example, HRA’s allow a company to take on a higher deductible plan and reimburse the difference over the current deductible level to the employees.
In this example, by taking on a higher deductible, monthly premiums are reduced. The savings generated from unused deductible at the end of the year stays with the company.
Two Components of the HRA
||Plans coordinated by Benefit Connections, Inc. to provide premium savings.
||The fund (created by premium savings) is then used to reimburse employees for deductibles/co-pays, etc.
Key HRA Attributes…
- Employer owned
- Company determines desired benefit levels.
- Reimbursements to employees under the HRA plan are tax deductible for the company, subject to IRS Regulations.
Click here for a HRA Real Life Example (.PDF Format)
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