Health Reimbursement Arrangements explained: HRA plan.
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One of the situations described in the ruling includes a description of an HRA similar to the one outlined in PLR 201528004. In this arrangement, the employer sets up a reimbursement plan that reimburses employees for medical care expenses that are properly substantiated. The plan applies to both current and retired employees.
The qualified small employer health reimbursement arrangement (QSEHRA) is a health benefit for employers with fewer than 50 full-time equivalent employees. With a QSEHRA, employers reimburse employees tax-free for their medical expenses, including individual health insurance premiums. Download our comprehensive guide to the small business HRA.
Health Reimbursement Account is an incorrect, but commonly used name for a Health Reimbursement Arrangement (HRA), a type of US employer-funded health benefit plan that reimburses employees for out-of-pocket medical expenses and, in limited cases, to pay for health insurance plan premiums. An HRA, in fact, is not an account, since money is not saved in a singular location.
Using Your HRA Health Reimbursement Accounts (HRAs) vary based on the options and features selected by your employer. Please review your plan documents for details regarding eligibility, eligible expenses, funding amounts and frequency, claims submission deadlines and more.
While an HRA qualifies as a health plan, the template provided does not fit the unique circumstances of most HRAs and so the attached information may be confusing. When you distribute the SBC to your participants, you may want to provide a cover letter that indicates this Summary of Benefits Coverage is required under PPACA (Health Care Reform).
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