|
|
HRAs
Health Reimbursement Arrangements (HRA)
Does Your Company Qualify for an HRA?
| | Choosing an OptiLife HRA allows the employer to set up an employer-funded Health Reimbursement Arrangement with one or more underlying HRA Accounts to cover employee medical expenses.
The HRA can be linked to a Group Health Insurance Plan (usually high deductible) where the employee must participate in the plan to be eligible for the HRA. The HRA can also be designed as a stand-alone account to reimburse employees for such expenses as dental, vision or wellness. Plan options can be set to meet a myriad of employer objectives, including enhancing retirement benefits and encouraging healthy lifestyles. This flexibility allows the employer to choose whether:
Account balances can be carried over from year to year, in total or with employer-specified limits.
Contributions can be credited at the beginning of the year or on a monthly basis.
Only certain medical expenses or all IRS section 213 expenses can be reimbursed.
Employees can have access to funds after termination or they can be forfeited.
The HRA and 125 Cafeteria Plans can be designed to work in tandem to provide maximum value to the employee in funding their medical expenses.
| |
|
| | If desired, virtually any employer could use an HRA a a tax-savings funding vehicle, with the caveat that there are special issues that affect participating principals of employers that are organized as S-corporations, partnerships, LLCs and sole proprietors, since they are considered to be self-employed persons.
| |
|
|
