Healthcare Reimbursement Accounts (HRA)
HRA plans are employer sponsored and offer maximum employee healthcare benefits in conjunction with a high deductible health plan (HDHP). Employers set the HRA dollar amount for employee medical expenses and employees use these tax-free employer funds to pay for healthcare expenses. HRAs must be paired with a qualified Health Plan in order to be eligible for pre-tax deduction.
The Advantages of HRA Benefits
- Contributions are tax deductible to Employers and tax free to employees
- Contributions can be defined by the Employer either by allocating a specific amount of money or by covering specific types of healthcare expenses
- Employer carryover option