BROWSE

Health Reimbursement Account (HRA)

What is a 'Health Reimbursement Account - HRA'

A health reimbursement account (HRA) consists of employer-funded plans that reimburse employees for incurred medical expenses that are not covered by the company's standard insurance plan. Because the employer funds the plan, any distributions are considered tax deductible (to the employer). Reimbursement dollars received by the employee are generally tax free.

The downside to HRAs is that companies may choose whether to start or fund such a plan. Also, if a plan has already been established, the employer has the right to cancel it at virtually any time.

Explaining 'Health Reimbursement Account - HRA'

As a benefit, an employee may be reimbursed for qualified medical expenses from his or her employer. The funds received are tax-free, but because the plan is employer funded, the employer has the right to cancel or alter the distributions at any time. In spite of this, many employees consider HRAs as a valuable benefit given the rising cost of health care.


Further Reading


The effect of consumer-directed health plans on the use of preventive and chronic illness services
www.healthaffairs.org [PDF]
… perhaps because those with a large deductible, who were generally healthy, contracted fewer … 3. Reductions in Diagnostic Imaging With High Deductible Health Plans. Medical Care, Vol … 22 September 2013 | International Journal of Health Care Finance and Economics, Vol …

Medical savings accounts: assessing their impact on efficiency, equity and financial protection in health careMedical savings accounts: assessing their impact on efficiency, equity and financial protection in health care
www.cambridge.org [PDF]
… perhaps because those with a large deductible, who were generally healthy, contracted fewer … 3. Reductions in Diagnostic Imaging With High Deductible Health Plans. Medical Care, Vol … 22 September 2013 | International Journal of Health Care Finance and Economics, Vol …

An assessment of high deductible health plans and affiliated savings accounts in the current marketAn assessment of high deductible health plans and affiliated savings accounts in the current market
www.tandfonline.com [PDF]
… perhaps because those with a large deductible, who were generally healthy, contracted fewer … 3. Reductions in Diagnostic Imaging With High Deductible Health Plans. Medical Care, Vol … 22 September 2013 | International Journal of Health Care Finance and Economics, Vol …

Lowering Financial Burdens and Increasing Health Insurance Coverage for Those with High Medical CostsLowering Financial Burdens and Increasing Health Insurance Coverage for Those with High Medical Costs
webarchive.urban.org [PDF]
… perhaps because those with a large deductible, who were generally healthy, contracted fewer … 3. Reductions in Diagnostic Imaging With High Deductible Health Plans. Medical Care, Vol … 22 September 2013 | International Journal of Health Care Finance and Economics, Vol …

… Views About Consumer-Driven Health Care: Results From A National Survey: Despite reservations among employers, enrollment in health reimbursement …… Views About Consumer-Driven Health Care: Results From A National Survey: Despite reservations among employers, enrollment in health reimbursement …
www.healthaffairs.org [PDF]
… perhaps because those with a large deductible, who were generally healthy, contracted fewer … 3. Reductions in Diagnostic Imaging With High Deductible Health Plans. Medical Care, Vol … 22 September 2013 | International Journal of Health Care Finance and Economics, Vol …

Satori integrated health and financial benefits system and methodSatori integrated health and financial benefits system and method
patents.google.com [PDF]
… perhaps because those with a large deductible, who were generally healthy, contracted fewer … 3. Reductions in Diagnostic Imaging With High Deductible Health Plans. Medical Care, Vol … 22 September 2013 | International Journal of Health Care Finance and Economics, Vol …

Evolution and early evidence of the impact of consumer-driven health plans: from e-commerce venture to health savings accountsEvolution and early evidence of the impact of consumer-driven health plans: from e-commerce venture to health savings accounts
www.tandfonline.com [PDF]
… perhaps because those with a large deductible, who were generally healthy, contracted fewer … 3. Reductions in Diagnostic Imaging With High Deductible Health Plans. Medical Care, Vol … 22 September 2013 | International Journal of Health Care Finance and Economics, Vol …

Availability, Contributions, Account Balances, and Rollovers in Account-Based Health PlansAvailability, Contributions, Account Balances, and Rollovers in Account-Based Health Plans
papers.ssrn.com [PDF]
… perhaps because those with a large deductible, who were generally healthy, contracted fewer … 3. Reductions in Diagnostic Imaging With High Deductible Health Plans. Medical Care, Vol … 22 September 2013 | International Journal of Health Care Finance and Economics, Vol …



Q&A About Health Reimbursement Account (HRA)


Are there any requirements for funding an HRA?

Yes, employers must have a plan in place before they can start funding it.

Can employers choose whether or not to start or fund HRAs?

Yes, employers may choose whether or not to start or fund HRAs.

Is the employer required to fund an HRA?

No, the employer has the right to cancel or alter distributions at any time.

How are reimbursements received by employees taxed?

Reimbursements are generally tax free.

What is an HRA?

An HRA is a tax-free reimbursement of medical expenses.

Leave a Reply

Your email address will not be published. Required fields are marked *