Health Reimbursement Arrangement (HRA)

HRA’s are an excellent way of keeping desired employee benefits and saving money. For example, HRA’s allow a company to take on a higher deductible plan and reimburse the difference over the current deductible level to the employees.

In this example, by taking on a higher deductible, monthly premiums are reduced. The savings generated from unused deductible at the end of the year stays with the company.

Two Components of the HRA

	Plans coordinated by Benefit Connections, Inc. to provide premium savings.
	The fund (created by premium savings) is then used to reimburse employees for deductibles/co-pays, etc.

Key HRA Attributes…

• Employer owned
• Company determines desired benefit levels.
• Reimbursements to employees under the HRA plan are tax deductible for the company, subject to IRS Regulations.

Click here for a HRA Real Life Example (.PDF Format)