hra

HRA's - Health Reimbursement Arrangements or Accounts

HRA's were set up by the Federal Government to allow employers to
contribute to an account for their employees to help them pay for medical
expenses such as deductibles, co-insurance and co-pays. The HRA's allow
the employer to reduce premiums by utilizing health insurances that have
higher out-of-pocket costs than traditional plans. These higher out-of-pocket
costs can then be covered by the HRA. The result is lower premiums for the
employer and the employee, if they pay a portion of the cost.

Some of the highlights of an HRA are:
- Set up and administration are provided at no cost by MoPEB.
- There is no 'pre-funding' of the HRA. After an initial deposit, typically
     the first month, the employer only provides funds when medical
    expenses are incurred.
- The HRA funds can 'rollover' to the next year if they are not used or the
    employer can simply keep them (they stay with the employer).
- Contributions are 100% tax deductible and are not subject to Federal,
    State or Social Security taxes.
- Claims are easy; if 'in-network' they are handled just like any medical
    expense and processed by the major medical carrier.
- For other claims; the employee is issued a 'debt card'. The debit card
    allows for instant reimbursement at the point of sale without having
    to pay the expense up front.

- Examples of qualifying expenses:
      - prescription drug co-pays              - office visits/emergency room
      - major medical deductibles            - major medical co-insurance
      - vision expenses including lasik    - contacts/ eyeglasses
      - dental expenses (orthodontia)      - hearing aid expenses

- Examples of non-qualifying expenses:
      - non-medical expenses                   - insurance premiums
      - over-the-counter drugs                   - vitamins & supplements

HRA's can help reduce costs and improve coverage and it's free