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Health Reimbursement Account
Employers have many different options when it comes to setting up Health Reimbursement Accounts (HRAs) for their employees, but don’t let the fear of confusing and ever-changing legislation keep you from taking part in tax-advantaged medical accounts. MedCost Benefit Services eliminates any confusion by helping you make the best choices for your company and employees. And, since we offer regular reporting for you and online employee access to account balance information and reimbursement status, everyone remains informed about HRA balances and expenses.
HRAs are available to companies of all sizes, and they provide
tax benefits for employers and employees alike. The employer sets aside
a specified dollar amount per employee for the coverage period, and the
funds are used to reimburse participating employees for qualified out-of-pocket
medical expenses, such as premiums, co-payments, deductibles, prescriptions,
and dental and vision services. Any amounts used by the employer to reimburse
qualified medical expenses are tax-deductible for the company. The reimbursements
received by employees are not considered as taxable income, so it is
tax-free for the employee, too. HRAs give employees flexibility in choosing
how to manage their health care and help them enjoy fewer out-of-pocket
health care costs. Typically, members who participate in an HRA are covered
under a qualified
High Deductible Health Plan
An HDHP usually has a lower premium because of its higher deductible
level, such as $1,100 for an individual or $2,200 for a family. It
provides coverage for the individual or family only after the deductible
is met. The exception to this can be preventive care procedures, such
as annual exams, immunizations, and routine prenatal care, which may
be paid at 100% regardless of whether the deductible has been met.
High Deductible Health Plan (HDHP)
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Trust MedCost to provide hassle-free administration
for all of your self-funded
benefit options.
