Health Reimbursement Arrangements (HRAs) are federally regulated, employer-sponsored health benefit plans that allow participants to receive reimbursement for eligible out-of-pocket healthcare expenses (including certain health insurance premiums). Reimbursements for eligible medical expenses made via an HRA are 100% employer funded, and are generally excluded from federal, state and Social Security taxes.

Stand-alone Health Reimbursement Arrangements (HRAs) provide small businesses a way to offer employees excellent health benefits without the cost or complication of group health insurance. 

A health reimbursement account is another term used for a Section 105 Health Reimbursement Arrangement (aka Health Reimbursement Account or HRA). With a health care reimbursement account, any employer can reimburse employees tax-free for eligible health care expenses including health insurance premiums. Think of it as a business expense account for health care.

The Affordable Care Act (known as ACA or health reform) was signed into law in 2010 and impacts many areas of health care and health insurance, including medical reimbursement programs such as HRAs, HSAs and FSAs. Here's an overview of how health reform impacts HRA, HSA and FSA programs.

Yes. Done correctly, a business is allowed to use a Health Reimbursement Arrangement, also called a Health Reimbursement Account or HRA, to contribute tax-free to employees' individual health insurance plans. This type of medical reimbursement is similar to the way a business can contribute to group health insurance premiums on a tax-free basis.

Health Reimbursement Arrangements (HRAs) are Section 105 health care plans paid for by an employer to reimburse the medical expenses of employees, their spouses, and dependents. HRAs are designed to give employees more choice and greater control over their health care coverage, and save money for both the employer and employees. Health Reimbursement Arrangements are commonly referred to (incorrectly) as Health Reimbursement Accounts.

When your company or clients are evaluating small business health insurance plans and Health Reimbursement Arrangements (HRAs), several health care terms will be used to describe the HRA benefit. Here is a glossary of the most common health care terms, as related to HRAs.

A Health Reimbursement Arrangement (HRA), is an IRS-approved, employer-funded, medical expense reimbursement plan. An HRA allows an employer to reimburse employees tax-free for out-of-pocket medical expenses and individual health insurance premiums. There there are two primary types of HRAs:

A defined contribution health plan works best for companies that want to offer health benefits, but cannot offer group health insurance due to high cost or participation requirements.  A common question is we receive is "what is the cost of a defined contribution plan?"

In this article, we'll provide an overview of healthcare benefit allowances.  Health Reimbursement Arrangements (HRAs) and defined contribution health benefits are types of healthcare benefit allowances.