HRA Details

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Health Reimbursement Arrangements (HRAs) are employer-funded dollars that can be used to reimburse employees for the purchase of qualified medical expenses such as health and dental plan premiums, co-pays, deductibles, vision care and prescriptions. Often, employers use HRAs in conjunction with a high deductible/co-pay health plan.

With an HRA, companies pay less in premiums for their health/dental plan, saving as much as 15-20%, on average. The savings are then used to reimburse employees’ eligible expenses. HRA contributions are tax-deductible, saving companies additional money by not having to pay FICA taxes. The funds are not treated as taxable income to the employees and employees can use the funds to pay for defined out-of-pocket expenses.

Altus Benefit Administrators can manage all aspects of an HRA plan, from choosing the right funding option to keeping companies in compliance.

Our comprehensive HRAs include:

• Creating a company’s plan documents and Summary Plan Description
  
• Collecting employee receipts for eligible expenses
  
• Verifying eligibility and reimbursing the employee