HRA – Health Reimbursement Account
HRA’s are health care accounts entirely funded through employers that are designed to help both employers and employees lower health care costs. HRAs are often paired with a high deductible health plan (HDHP), helping to reduce premium costs and allowing employees to accumulate funds for health related expenses. This approach allows employees to take a more efficient, proactive approach to health care, eventually lessening the demand and cost of health care over time for both the employer and employee.
Employers benefit from offering HRAs by reducing insurance costs and restructuring health benefits. By moving employees to HDHPs, costs are more predictable and controlled as employees are encouraged to become better health care consumers. HRA’s motivate employees to make better health care and future planning decisions.
Experience the IntegraFlex difference. Let us help you:
- Determine savings arrangements that help offset out-of-pocket medical expenses
- Empower your employees to be informed and responsible healthcare consumers
- Enjoy the flexibility to design a plan that works best for your company and its employees
How much can your business save with a HRA?
Employer Benefits:
- All employer contributions are 100% deductible.
- HRA plans enable employers to control costs of providing healthcare benefits while providing a valuable employee benefits.
- HRA allows employers to determine the best type of coverage for their employees based on the demographics of their employee group.
- HRAs help employers save money by eliminating costs tied to premium payments for employees who are not utilizing their coverage.
- HRAs enable employers to recruit and retain quality employees.
Employee Benefits:
- 100% employer funded. HRAs must be paid solely with employer dollars
- Favorable tax treatment. Coverage under an HRA and expenses reimbursed through the HRA are excludable from employee gross income.
- Reduce out-of-pocket costs. Employees may use the money in their HRA to pay for eligible medical expenses and prescriptions. The HRA funds can help employees satisfy their plan’s annual deductible.
- Carry-over of unused coverage. Unused HRA account dollars may be carried over to subsequent coverage periods.
- Reimbursements may be tax-free if used to pay for qualified medical expenses.
- Involvement in medical purchasing decisions and wiser use of health care services leads to more control and self-service.
Download our HRA Plan Design Guide to learn more about HRAs.
