A Health Reimbursement Arrangement (HRA) is an Internal Revenue Service (IRS)-sanctioned program that allows an employer to set aside funds in order to reimburse participating employees who paid qualified medical expenses. Employers find HRAs an attractive option because HRA administrators process payments for eligible expenses, thus relieving the employer of the burden.
At CGI, administering claims through an HRA is a seamless and automated process. We have the relationships and programs in place to directly operate an HRA and alleviate this responsibility from your company. As a provider of total business solutions, let us custom design a benefits product that best suits your company.
Advantages of HRAs for employers include:
- Reimbursements of qualified claims are tax-deductible for the employer.
- Employers know their maximum expense related to their health care benefit.
Advantages of HRAs for employees include:
- Contributions that employers make can be excluded from employees’ gross income.
- Reimbursements may be tax free if the employee pays qualified medical expenses.
- Unused funds in the HRA can be rolled into future years at the employer’s discretion.
- HRAs may be offered in conjunction with other employer-provided health benefits including Flexible Spending Accounts (FSAs).
- Employees do not have to be covered under any other health care plan to participate.
- Employees can be reimbursed for a health care plan that meets their or their family’s specific needs, as opposed to a standard company plan.