are Health Reimbursement Arrangements (HRA)?
A better medical plan, at
Arrangements (HRA) are catching on, for many good reasons.
HRAs provide better and more flexible benefits to the employee
with the ability for employers to reduce health insurance
An HRA is an IRS approved
(section 105) tax-favored benefit that reimburses employees
for qualified medical care expenses not reimbursed by an
employer's health plan such as deductibles.
A HRA account can be combined
with a Health Flexible Spending Account (FSA). The
reimbursements of qualified medical expenses are tax free!
This saves the employer and employee taxes.
- Reimburses the employee for
medical care expenses
- Reimbursements are up to the
maximum dollar amount for over a prescribed period of time
(usually one year).
- The HRA plan can be
customized to each individual company.
- Reimbursements can be
designed as a % of the total amount to be reimbursed,
sharing the costs with the employee.
- Any deductible amount can be
designed in the plan. As a first, second, third or fourth
tier in the plan.
- When coupled with a higher
medical insurance deductible, an HRA plan can
significantly lower insurance costs.
- Administrative costs are tax
deductible - can be paid for entirely by the employer, or
the employees, or you can share the costs with your
- Balances can be rolled
forward each year and retained by the employer.
- Works well with FSA plans.
- Reimbursements of qualified
medical expenses are not taxed.
- Employee finally has access
to medical expenses that have typically not been covered
by traditional medical insurance plans.
DRAS, Ltd., can design
implement and administer your HRA plan, providing you with the
necessary detailed reports.
To learn more, contact Ann
Crouse at (937)428-1046 or 800-518-8811, or Email: firstname.lastname@example.org
Direct Reimbursement, Adm., Services, Ltd.
P.O. Box 292455
Kettering, OH 45429