Health Reimbursement Arrangement (HRA) Administration
A Health Reimbursement Arrangement (HRA) is used to pay for qualified medical expenses. HRAs may also be used to reimburse employees for the purchase of health insurance as well. In general, the employer does not specifically set money aside for covered individuals - instead, an employee is reimbursed for any eligible medical expenses directly from general operating funds. HRAs are only available through an employer and must be funded only by the employer, as the employer owns the account.
If the employer chooses, money remaining in the HRA account at year's end can be carried over to the next plan year. An employer may cap the carryover amount if the employer elects to allow carryovers. Employees are not allowed to contribute to an HRA.
Many of Clark & Lavey's clients use HRAs in conjunction with their health plans. Just as health insurance carriers process claim payments for covered individuals, HRA administrators process payments for eligible expenses, thus relieving the employer of the burden. Let us help you with administration today.
Overview
