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A health reimbursement arrangement (HRA), sometimes called a health reimbursement account, is an IRS-approved, employer-funded, tax-advantaged health benefit used to reimburse employees for out-of-pocket medical expenses and personal health insurance premiums. An HRA is not health insurance. Instead, employers offer employees a monthly allowance of tax-free money. Employees then buy the health care services they want, potentially including health insurance, and the employer reimburses them up to their allowance amount. Determine what you can afford to spend on health benefits. If you can afford small business group health insurance plans with a low deductible, you may not want to offer an HRA. To know more details please visit here https://www.capbluecross.com/wps/portal/cap/employer/shop-group-plans
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What is a health reimbursement arrangement (HRA)? A health reimbursement arrangement (HRA), sometimes called a health reimbursement account, is an IRS-approved, employer-funded, tax- advantaged health benefit used to reimburse employees for out-of-pocket medical expenses and personal health insurance premiums. An HRA is not health insurance. Instead, employers offer employees a monthly allowance of tax-free money. Employees then buy the health care services they want, potentially including health insurance, and the employer reimburses them up to their allowance amount. Health reimbursement arrangements are notional arrangements; no funds are expensed until reimbursements are paid. Through HRAs, employers reimburse employees directly only after the employees incur approved medical expenses. HRAs follow the same five-step structure: The business sets the allowance amount. Employees make purchases Employees submit proof of expenses incurred. The business reviews employee documentation. The business reimburses employees. Source: peoplekeep.com www.capbluecross.com
