Health Reimbursement Arrangements (HRA) are a type of medical reimbursement plan used to pay medical expenses tax-free employees.
Whether your company currently offering an HRA, or you are looking for ways to help employees with medical expenses, a common question is, "Qu'est- what exactly can an HRA pay? "
the IRS sets guidelines for eligible medical expenses an HRA can repay. In addition, employers can choose which IRS-qualified expenses not reimbursed. Let's take a look at how it works.
HRA eligible medical expenses
An HRA can pay eligible medical expenses and amounts of insurance premiums, as defined by the IRS (see IRC Section 213 (d) and IRS publication 502 ).
What medical expenses? According to the IRS, medical expenditure is "the costs of diagnosis, cure, mitigation, treatment or prevention of disease, and the costs for treatments affecting part or function of the body. these expenses include payments for legal medical services provided by physicians, surgeons, dentists and other practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes "
According to this definition, common medical expenses that can be reimbursed through an HRA include :.
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Acupuncture
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Ambulance
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Chiropractor
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Contact lenses
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dental treatment
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Vision Expenses
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hospital
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insurance premiums
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laboratory fees
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Medication pharmaceutical
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Doctor Visit Co-pay
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surgery
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smoking cessation
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Therapy
for a complete list of eligible and ineligible costs HRA, download this free PDF list .
Employer Customize spending categories
In the IRS guidelines, employers can choose categories of expenditure eligible for refund ( or not pay).
For example, an employer may establish an HRA to reimburse only out -pocket medical expenses not covered by their group health plan.
It is also worth noting that employers customize their CRH (and other medical reimbursement plans) to comply with the new rules Obamacare. In some cases, this means altering what is refundable or how the HRA is structured.
Unsure what your HRA can pay? The HRA Plan Documents will always specify what type of medical expenses are covered
Related :. What pre-tax health accounts are available for Small Employers?
Conclusion
Understanding HRA a refund is as simple as asking, "Is IRS medical expenses qualified? " and " Is HRA our company reimburse this class of medical costs? "
Have -you questions about what HRA can pay? Download this PDF list, or leave a question below.
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