Health Reimbursement Arrangements (HRAs)

Health Reimbursement Arrangements (HRAs) are tax-favored accounts that employers can establish for their employees to pay for certain medical expenses for the employee, their spouse and/or tax dependents.

About HRAs:

• Any employee is eligible (subject to employer-designed exclusions)
• Can be designed in conjunction with a high deductible health plan to help employees pay their deductible 
• Employers can deduct their HRA contribution
• Only employers can make contributions
• Owned by the employer
• There is no maximum contribution amount
• Unspent balances can be carried over to the next year if it is designed in the plan
• IRS non-discrimination rules apply
• Need to have a written plan document, distribute a summary plan descriptionand in some cases annually file a Form 5500

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