Health Care Reimbursement Account
Instead it is an agreement under which the employee can submit qualified health expenses to the employer for reimbursement.
Health care reimbursement account. The money in it pays for qualified expenses like medical pharmacy dental and vision as determined by the employer. The minimum contribution is 130. What is healthcare reimbursement accounts.
The health care reimbursement account allows employees to pay for their out of pocket medical expenses on a before tax basis. Cataldo suite 220 spokane wa 99201 phone. However if you enroll in the duke basic medical plan the contribution made by duke which is described here is not included in this limit.
Other key things to know about hras are. An hra is not truly an account since it does not place funds under a separate legal title. The health care reimbursement account is a fringe benefit plan which is authorized under the irs code section 105.
A health care reimbursement account is an irs approved employer funded tax advantaged employer health benefit plan that can reimburse employees for individual health insurance premiums. What is the health care reimbursement account. A health reimbursement account hra also known as a health reimbursement arrangement is an irs approved tax advantaged health benefit plan that reimburses employees for out of pocket medical expenses and individual health insurance premiums.
Health reimbursement arrangement hra health reimbursement arrangements hras are employer funded group health plans from which employees are reimbursed tax free for qualified medical expenses up to a fixed dollar amount per year. A health care reimbursement account is not considered health insurance. Employers are allowed to claim a.
Unused amounts may be rolled over to be used in subsequent years. A health reimbursement arrangement hra is an employer funded plan that reimburses employees for qualified medical expenses and in some cases insurance premiums. The maximum contribution you can make to your health care reimbursement account annually is 2 750.