Healthcare Reimbursement Arrangement Administration (HRA)
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1.
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An account where the Employer reimburses employees (and generally eligible
dependents) for out-of-pocket healthcare costs tax free
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2.
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Advantages to the Employer are greater flexibility in plan design and allows
employer to purchase less expensive health insurance
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3.
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Generally an HRA is offered in conjunction with a High Deductible Health Plan
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4.
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Eligible out-of-pocket healthcare costs are defined by the Employer and may
include medical, dental, vision, hearing and prescriptions not reimbursed by
insurance
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5.
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Because employees manage these funds, they seek out lower-priced alternatives
for medical care, prescription drugs, dental care, vision care and other
services.
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6.
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Debit card available for instant claim reimbursement |
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7.
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Non-debit card claims processed weekly and paid by direct deposit or check to
the employee participant
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8.
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Account is funded by the employer, employees cannot make contributions to the
account
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9.
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Unused balances can be rolled over each year
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10.
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Employer contributions are tax deductible and employee reimbursement is tax free
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