A Health reimbursement Account is designed to allow the employer to pay all of a portion of the deductible for their employees and dependants.
Benefits of an HRA:
- You control contributions and decide what expenses they can be used for.
- A HRA may allow you to chose a higher deductible plan and lower the company's premium.
- HRA reimbursements are tax deductible for you and tax exempt for your employees.
Note: HRAs and HSAs are often paired with specific health insurance plans. Talk with your health insurance provider and consider options carefully when shopping for health insurance for your employees to ensure you get the features you want.
First Commonwealth Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.