Health Reimbursement Arrangements (HRAs)

Header montage depicting health reimbursement arrangements HRAs

Health Reimbursement Arrangements (HRAs) can generate significant savings in overall health care costs and benefits. Also called Health Reimbursement “Accounts,” HRAs are employee benefit plans that allow both employers and employees to save on health care costs by taking advantage of the special tax treatment of HRA funds. The Internal Revenue Service (IRS) has established guidelines allowing employers to set aside pre-determined amounts of funds to be used to reimburse employees for their out-of-pocket medical expenses, tax-free. Employers design their plans to reimburse only the eligible expenses they choose, such as costs for prescriptions drug, deductibles, and other eligible out-of-pocket payments not covered by the health insurance plan.   

HRAs can be designed in many ways to suit the specific needs of an employer and its employees. Often viewed as one of the most versatile employer-designed benefit plans to reimburse employee out-of-pocket medical, dental, and/or vision expenses, HRAs can be an attractive component of an effective employee benefits strategy.


Contact one of our licensed professional Employee Benefits Advisors to learn more
about HRAs and how they might be a good option for you and your employees:

(360) 779-4448     |