Health Reimbursement Arrangements are an innovative approach to employee benefits. This type of
plan is an arrangement set up and sponsored by the employer to offer a defined benefit to the employees.
The benefit is then used by employees to pay for qualified medical expenses.
HRA plans have endless design options and can be shaped to best fit your organizations financial
goals and employee benefit needs. Many employers are offering a high deductible plan and pairing it
with an HRA that will reimburse employees for some or all of the deductible expense. The level of
benefit and the degree of financial liability is determined during the plan set-up process.
The employer determines what will and will not be reimbursable under the plan. Eligible expenses
can be anything under the scope of IRC Sec 213d. Many employers decide to limit the eligible expenses
to certain types of expenses- for example deductibles, co-pays and co-insurance. Other employers will
offer a wider range of eligible expenses.