Health Reimbursement Arrangement (HRA) Details

HRAs are simple employer-funded, Section 105 defined contribution healthcare plans which provide tax-free benefits for employees and their legal dependents.

HRAs can be paired with high-deductible health care (HDHC) plans which may help employers reduce overall health plan costs.

HRAs are generally established as medi-gap policies to help offset higher deductibles or other out-of-pocket expenses for employees and dependents or retirees. They may also be offered as carve-out plans independent of major medical plans.

HRAs combine the best aspects of FSAs (Flex Plans) and MSAs (Medical Savings Accounts) including:

Key Features

* Caution: HIPAA implications