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A Guide to Health Reimbursement Accounts

Health Reimbursement Account Overview

What is a Health Reimbursement Account?

Health Reimbursement Accounts (HRAs) are healthcare plans paid for by an employer to reimburse theWhat_is_Health_Reimbursement_Accoung medical expenses of its employees, their spouses, and dependents. HRAs are designed to give employees more choice and greater control over their healthcare coverage.   

Health Reimbursement Accounts are funded solely by the employer, and cannot be funded through employee salary deductions. The employer sets the parameters for the Health Reimbursement Accounts, and unused dollars remain with the employer - they do not follow the employee to new employment. Because the reimbursements occur pre-tax, employees and employers often save up to 50% in combined taxes on the cost of medical expenses.

Health Reimbursement Accounts are a type of Section 105 Medical Reimbursement Plan and are also commonly referred to as Health Reimbursement Arrangements.

The sections outlined on our navigation bar provide more information about Health Reimbursement Accounts.

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