Health Reimbursement Account

A structure in which an employer makes contributions to a special account that can be used to pay for participating employees' medical expenses not reimbursed by his/her ordinary health insurance. The employee may use funds in the account to make premium payments or to pay for unexpected expenses. The employee does not pay taxes on these benefits. A health reimbursement account helps reduce one's risk of being underinsured. See also: Health savings account.

References in periodicals archive

"The plans we surveyed showed high variability in what they do with the data that HRAs produce," Boehm offers.

How plans use risk assessments

Some of the key challenges of using online HRAs are related to computer access, password coordination, implementation processes, and security concerns (Kashima 2006).

Using online health risk assessments: EAPs can help reduce organizational risks by advocating the use of online screening tools as part of a health management program

Critics say HRAs could allow employers to come up with strategies for shifting workers with high health care costs off their company plans and into the market for individual policies.

White House expands health accounts aimed at small firms Expands: Accounts will be available next Jan. 1

In summary, qualified small employer HRAs provide a valuable benefit and favorable tax treatment for employees of small employers.

Health reimbursement arrangements for small employers

In guidance on the "same terms" provision, the notice states that a small employer HRA must be operated on a uniform and consistent basis with respect to all eligible employees but notes that an arrangement will not fail this requirement merely because employees submit differing amounts of expenses for reimbursement within the statutory limits.

Qualified small employer HRAs get guidance: The IRS answers questions on health reimbursement arrangements, which were reinstated for small employers after PPACA market reform rules generally penalized the popular coverage option

* HRAs reimburse the medical expenses of employees who have obtained minimum essential coverage.

Health care relief for small businesses

Retiree HRAs are considered employer-sponsored group plans, thereby meeting the definition of minimum essential coverage under the ACA.

Health reimbursement arrangements