What is a Health Reimbursement Arrangement/Unallocated Medical Reimbursement Plan?
An HRA/UMR is a consumer directed, tax-free health care reimbursement arrangement established and funded by the employer. The employee uses the funds, tax-free, to pay for qualified out-of-pocket medical expenses that the employer deems eligible when setting up the plan.
How does an HRA work?
Employers use the plan to reimburse the employee for eligible out-of-pocket expenses. These plans are usually tied to a high deductible health plan or high hospital deductible plan, or they may be used in place of a fully insured dental plan.
Can I offer both an HRA and a FSA plan?
Absolutely! The only requirement is that the Plan Document defines which plan pays claims first. You can be creative when setting up the plan and the reimbursements for which you would like to pay.
How does my business benefit from an HRA?
An HRA is often offered in conjunction with a high-deductible medical plan, which means the employer should save more than enough on premiums to offset HRA contributions. HRAs are simple, flexible in design and easily administered by Advanced Benefit Strategies.
Who can use this?
Businesses of all sizes and industries. All companies who want to offer quality health care benefits while keeping costs down.