Health Reimbursement Arrangement

Employer-Funded Healthcare Benefits

Health reimbursement arrangements (HRAs) that help employees pay for medical expenses with tax-free employer contributions.

The Problem

Even the best health insurance plans don’t cover everything. Dental, vision, deductibles, and other out-of-pocket costs can quickly add up for employees. Employers want to help, but traditional benefits can be expensive and rigid.

The Plan

A Health Reimbursement Arrangement (HRA) allows employers to set aside pre-tax dollars to reimburse employees for qualified medical expenses. Unlike traditional insurance, HRAs are flexible and employer-funded — you decide what’s covered and how much is reimbursed.

Key Features of HRAs

  • Employer-sponsored and tax-deductible.

  • Reimburse employees for eligible medical expenses.

  • Can complement an existing health plan or stand in for other benefits like dental or vision.

  • Flexible design to cover broad or narrow categories of expenses.

Why It Matters for Employers

HRAs give businesses the ability to:

  • Control costs by setting limits on reimbursements.

  • Save on taxes, since contributions are deductible.

  • Customize benefits to fit your workforce’s unique needs.

  • Offer competitive perks without the expense of full insurance coverage.

How It Works

  1. Set up a Section 105 plan (required for compliance).

  2. Define what’s covered — from check-ups and prescriptions to vision, dental, or deductible expenses.

  3. Fund the HRA at the level you choose.

  4. Employees submit expenses and get reimbursed tax-free.

The Result

With HRAs:

  • Employees get relief from everyday medical costs.

  • Employers gain flexibility and predictable expenses.

  • Your business stands out by offering creative, cost-effective benefits that truly matter.

Interested in offering HRAs as part of your benefits strategy? Contact us to explore your options.

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