HRA

Health Reimbursement Arrangement

What is a Health Reimbursement Arrangement?

A Health Reimbursement Arrangement (HRA) allows an employer-funded account to repay the unreimbursed medical expenses of employees. Employers don’t have to pre-fund the entire HRA account, they can simply reimburse employees as they submit claims. Therefore, the less employees spend on medical expenses, the more the employer saves.

A Section 105 HRA account may reimburse any or all of the same expenses as a Section 125 Medical Flexible Spending Account. (FSA) An HRA may also reimburse non-employer sponsored health premiums.

Firms of any size can establish an HRA program. An HRA gives the employer control over the expenses they will reimburse and the flexibility to design a benefit plan that can meet their employees’ needs. This plan can be used in conjunction with or instead of a traditionally insured group medical plan.

Costs associated with health care are going to continue to rise and employers are going to struggle with how to manage these increases. Therefore, it will be necessary for employers and employees to become more familiar with Health Reimbursement Arrangement Plans and the savings, both tax and premium, that they can provide. FW Serra simplifies plan administration and allows employers to spend more time making their businesses successful. Through our efficient in-house administrative services, FW Serra can help reduce the costs of managing your Health Reimbursement Arrangement.

HRAs can be structured to include a variety of tax-free benefits:

  • Qualified Medical Expenses for Employees and their families
  • Individual Health Plan Premium Reimbursement Programs
  • Insurance Deductible Replacement Programs
  • Single Expense Reimbursement programs (i.e., Dental or Vision)

With FW Serra, employers are able to have the flexibility to design their own benefit plan and control what the benefit might cost. Using FW Serra will allow you to capitalize on the following:

  • Complete In-House HRA Administration
  • The Needs of a Diverse Workforce
  • Control Benefit/Premium Costs
  • Recruit and Retain Quality Employees