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A Health Reimbursement Account is a benefit set up by an employer to help employees cover qualifying health expenses. Reimbursements under an HRA are tax-free for both the employee and employer.
A Health Reimbursement Arrangement, also known as a Health Reimbursement Account (HRA), [1] is a type of US employer-funded health benefit plan that reimburses employees for out-of-pocket medical expenses and, in limited cases, to pay for health insurance plan premiums.
HRAs are tax-advantaged arrangements, meaning that the reimbursement is not subject to payroll taxes. Likewise, employees aren't required to pay income taxes on the money they receive from the HRA.
Only people enrolled in high-deducible health plans are eligible for HSAs. Another type of account in the consumer driven healthcare model is Health Reimbursement Arrangements (HRAs), which are employer-funded, and in which employers receive the tax benefits. These accounts are available to people that do not qualify for HSAs. [2]
A guide to individual coverage HRAs. Adam Stevenson. ... Employee flexibility: ... The reimbursement is tax-free for both the employer and the employee, making it a financially advantageous ...
A Multiple Employer Welfare Arrangement, or MEWA, is a vehicle through which more than one employer can come together and offer a self-funded plan to employees—a type of co-op. MEWAs are useful for small groups that on their own would not be able to self-fund; for instance, a number of local small businesses, each with a dozen employees, can ...
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