Health reimbursement accounts (HRA) allows employees to pay eligible health care costs tax free. Accounts are funded by the employers and are not portable. Balances may roll over at year-end but do not accrue interest. Accounts may be offered with a high-deductible health plan or alone.
HRAs are a valued employee benefit that offer you flexibility and control. You decide which eligible expenses to cover and whether to roll over year-end balances. You also decide whether to offer accounts in conjunction with high-deductible health plans (HDHP) or alone.
Shifting health care spending from a traditional plan to an HRA and HDHP combination may reduce premium and utilization costs, while still allowing you to provide rich benefits.
The following services are offered through SHDR, a division of BB&T:
An HRA allows employees to pay current eligible out-of-pocket health care costs tax-free. If you allow year-end balances to roll-over, employees can also save for future expenses. If you offer the HRA in conjunction with an HDHP, employees who contribute to their health care premiums will pay a reduced cost for their benefits.
Plans sponsors and participants have 24/7 access to account information and educational material online.