Health Reimbursement Arrangement

What is it?

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.

Eligible Expenses

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.