Health Insurance Reimbursement Arrangements (HRAs)

HRAs are employer-funded accounts; they are actually a “promise-to-pay” by the employer. They are accounts that employees draw upon for qualified medical expenses.

Normally HRAs work in conjunction with high-deductible health plans (HDHP), or consumer-directed health plans. In order to have an HRA though, an employer does NOT need to have an IRS qualified HDHP, as is the case with another consumer-directed product, the Health Savings Account (H.S.A).

Thoseare qualified accounts in interest-bearing vehicles, normally a bank, and are owned by the employee.

HRAs are a great way for employers to be able to create consumer awareness in its employees, as evidence shows that buying patterns are more moderate and calculated when employees use HRAs.

Normally preventive care benefits are not charged against an HRA, and in addition the unused “funds” of the employee can be rolled in to the following year. When the HRA fund is exhausted, employees usually have a deductible to meet before other medical expenses are reimbursed.

The HealthInsuranceGeeks.com difference is you can shop from all of the market leaders and carriers offering HRA products, as well as standalone vendors that coordinate with insurance carriers.