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We've updated one of our most popular materials. See what's new in our guide to MERPs.

Health Reimbursement Plans (HRPs)

   

A Health Reimbursement Plan (HRP) is an Internal Revenue Service (IRS)-sanctioned program that allows an employer to set aside funds in order to reimburse participating employees who paid qualified health insurance expenses. Employers find HRPs an attractive option because Health Reimbursement Plan administrators process claims for eligible expenses, thus relieving the employer of the burden.

At Zane Benefits, administering reimbursements through an HRP is a seamless and automated process. 

Advantages of Health Reimbursement Plans for employers include:

  • Reimbursements of qualified claims are tax-deductible for the employer.

  • Employers know their maximum expense related to their health care benefit.

Advantages of Health Reimbursement Plans for employees include:

  • Contributions that employers make can be excluded from employees' gross income.

  • Reimbursements may be tax free

  • HRPs may be offered in conjunction with other employer-provided health benefits including Flexible Spending Accounts (FSAs).

  • Employees can be reimbursed for a health care plan that meets their or their family's specific needs, as opposed to a standard company plan. 

Small Business Guide to Health Insurance Allowances