Health Reimbursement Accounts (HRAs) are a type of healthcare benefit account owned and funded by employers. Employees do not pay into an HRA, but they use this account to cover eligible healthcare expenses. By integrating an HRA with a major medical plan, employers can lower the medical plan premium costs by increasing the deductible and out of pocket maximum, or increasing or removing certain copays (such as specialty prescription drug and specialist office visits), all while minimizing the impact to employees by giving them HRA dollars to help cover the increased out of pocket expenses.
Health Reimbursement Account (HRA)
• Can be offered by employers of any size
• Employer contributions to the HRA are tax-deductible to the employer and tax-free to the employee
• Employer defines the eligible out-of-pocket expenses and sets the maximum amount that can be reimbursed
• Some HRA plan designs allow for a Benefits Debit Card (ex: an HRA that reimburses specialty office visits or prescription drugs that would commonly go to deductible)
• Funds cannot be used to pay for health insurance premiums
IMS can establish and administer your Health Reimbursement Account plan. Our experienced staff will help you construct an effective HRA plan design, and our industry-leading claims processing and administrative systems will assure the efficient and accurate day-to-day processing of your HRA Plan.