health Introduction reimbursement Arrangements
? a health reimbursement arrangement (HRA), commonly known as a reimbursement account for health, is an IRS approved, benefit scheme funded by the employer health tax benefits that employers reimburse employees for medical expenses outside the pocket and individual health insurance premiums. A Health Reimbursement Arrangement is not health insurance. Arrangement Health Reimbursement 
allows the employer to make contributions to the account of an employee and provide reimbursement for eligible expenses. An HRA plan is a great way to supplement sickness insurance benefits and allow employees to pay for a wide range of medical expenses not covered by insurance.
Because of the health reform, there are changes to the use of CRH affecting some HRA Plans. For more information on CRH and health reform, see: 4 things to know about CRH and health reform in 2016. The following article provides an overview of what a HRA is, and how it is structured.
Health Reimbursement Arrangements are notional
Health Reimbursement Arrangements are theoretical arrangements; no funds are expensed until reimbursements are paid. With health reimbursement arrangements, employers reimburse employees directly only after the employees incur approved medical expenses.
Health Reimbursement Arrangements have no annual limits
Unlike a health savings account (HSA), there is no limit to the amount of money that an employer can contribute to health reimbursement of an employee arrangement.
Health arrangement allowable expenses Reimbursement
arrangement Health reimbursement may reimburse any expense considered a qualified medical expense under IRS section 213 of the Code, including premiums for personal insurance policies. In the guidelines the IRS, employers can restrict the list of reimbursable expenses in any way they choose for their HRA plan.
Health Reimbursement Arrangements Allow annual Rollover
Health Reimbursement Arrangement balances can roll forward from one year to another. Employers can design the program not to allow balances to roll from one year to another. However, limiting the rollover function key arrangement beats a health benefit reimbursement. Employers can allow employees to access their health Reimbursement Arrangement accounts after retirement. However, employers can not pay / distribute cash balances or other benefits to employees on the HRA plan.
health reports Reimbursement Arrangement Administrative Features
Administration HRA data reports show real-time health monitoring arrangement Repayment liabilities, refunds and easy use. Employers can change plan benefits at any time or cancel the overall plan at any time. In addition, Health Reimbursement Arrangements allow employers to establish the year of maximum repayment plan for a given category of expenditure (eg, dental) and to establish a maximum balance that any participant class may hold at a time.
Editor's note: This article was originally published in January 2012.
What questions have about health reimbursement arrangements (HRA)? Leave a comment and we'll help you answer them.
0 Komentar