A health reimbursement arrangement (HRA) helps employers easily reimburse employees for health expenses while controlling costs. The arrangement benefits both employers and employees since employers can claim tax deductions for reimbursements, while employees can receive eligible medical expenses tax free. Employers choose HRAs because they are a simple, straightforward system.
Employees like them because they are a huge job perk. People are sometimes uncertain about enrolling in or using benefits, because they don’t want to lose money in an account or have money somewhere they aren’t able to access it. With HRAs, this isn’t a concern. Employees can save on medical, dental, and vision costs without using their own personal funds. Even better, they’re able to do this before taxes.
HRAs are flexible and customizable, and they also have their own unique compliance and eligibility requirements. Depending on the situation, businesses can use them instead of group health insurance or in addition to it. But with all the acronyms, varying options, and health care choices, how does it all really work? Which HRA should you use?
To help you, ConnectYourCare has designed an HRA infographic to make the information on different types of HRAs easy to understand. Check out—and please share–our new visual aid that breaks down the HRA types you can choose from including:
In a fresh and engaging way, it outlines benefits for employers and employees, as well as shows you what options best suit your business goals. As always, it finishes up by providing ConnectYourCare’s contact information, so please let us know if you have any questions.