How would my company benefit from offering a Health Reimbursement Arrangement (HRA)?
• Offering an HRA allows the employer to save money on health insurance premiums by increasing the co-payments and deductibles under your health insurance plans. Essentially, it allows you to tackle the rising cost of healthcare and set long-term budget goals. The savings from the plan premiums can fund an HRA that will allow your employees to pay for unreimbursed medical expenses. Unlike Section 125 Flexible Spending Account plans, a Health Reimbursement Arrangement allows your participants to roll over any year-end balances for expenses incurred in subsequent years. Medical expenses reimbursed through a Health Reimbursement Account are excludable from the employee’s gross income and are, therefore, not taxable.
Related Questions
- Can I roll over my Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) account balance to an HSA?
- How is our companys Health Reimbursement Arrangement (HRA) affected by the age-26 coverage mandate?
- How would my company benefit from offering a Health Reimbursement Arrangement (HRA)?
