HEALTH REIMBURSEMENT ARRANGEMENT

A Health Reimbursement Arrangement (HRA) is a tax-favored arrangement whereby the employer agrees to reimburse a set amount of eligible medical expenses not covered under other insurance. Unlike Flexible Spending Accounts, the account is not pre-funded and the employee does not contribute funds. The funds can rollover year-to-year. Many employers use this type of plan in conjunction with a health plan with a high deductible in order to save premium costs.

The employer is able to deduct claim reimbursements while the employee is not taxed on the eligible disbursements.

ELIGIBLE EXPENSES

• Doctor’s office and prescription drug co-pays

• Medical deductibles and co-insurance

• Approved over-the-counter items

• Vision and dental costs

• Chiropractic services