Health Reimbursement Plan (HRA)

An HRA plan is funded by the employer and is used to pay for certain healthcare-related expenses. It has a lot of flexibility. The reimbursements are not taxable to the employee and are tax deductible for the employer. The most common use of an HRA is in combination with a higher deductible health plan. The employer benefits from lower premium cost of the high deductible plan, but the higher deductible cost to the employee is cushioned with employer HRA dollars that pay for some below-the-deductible expenses. More...

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