Health Reimbursement Accounts for Your Group
Health reimbursement accounts give employers a flexible way to control healthcare costs, and employees a way to pay for extra medical expenses.
Insurance Tip
HRAs allow employers broad flexibility. You can tailor the HRA contributions to fit the needs of different types of employees based on age, medical risk, or seniority. Or, you can choose to stipulate that a portion of the HRA is forfeited if not used within a year, in order to encourage employees to take advantage of preventive care.1
Health reimbursement accounts (HRAs) are reimbursement accounts fully funded by employers on a pre-tax basis to help employees pay for certain medical expenses.
The advantages to employers include:
- Cost savings. Typically, HRAs are offered along with a high-deductible medical plan, which have lower premiums.
- Tax deductions. Employer contributions to the HRA accounts are 100 percent tax deductible.
- Flexibility. HRAs give employers more control over healthcare costs because they can choose what their employees can use the funds for, and whether or not the funds will roll over into the next year.
Advantage for employees include:
- Reduced premiums. Medical plans offered with HRAs typically have lower premiums, saving money for both the employee and employer.
- Access to tax-free funds. Employees can use HRA funds to pay extra medical expenses their medical plan doesn’t cover (depending on the plan).
- Flexibility. Employees do not have to participate in the company’s health plan in order to participate in an HRA.
TMAIT Advisors can help you find the HRA medical plan option that best fits the needs of your group.
We can shop the open market for you.
Our Advisors shop the open market and present a range of HRA-compatible medical-plan options from reputable insurance carriers. We do the legwork. You get the medical plan that best suits the needs of your group.
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