A Health Reimbursement Arrangement (HRA) is a federally approved program which makes provisions for employers to set up accounts for their employees to allow reimbursements for their eligible out-of-pocket medical expenses.

	1. Increase the major medical deductible. Increase deductibles and co-payments on your major medical insurance plans, which will lower the premiums.
	2. Employer Selects a benefit package for employees. The employer can choose the type of medical plans to offer and how much they will contribute to their employees' health care. (The average employer pays 81.8% of the premium for an employee. 2001 ILSBA Insurance Survey.)
	3. Install a Health Reimbursement Arrangement With medical insurance companies placing more stipulations on the type of care that they will cover, it has become more attractive to employees to have more power over their health care decisions. These plans can also be designed as the employer sees fit. This gives the employer more control of the health care coverages. Employees like the fact that the unused premium can be rolled over from year to year. (This is an employer option.)
	4. Use savings from higher deductibles to fund an employee HRA. The savings gained from increased major medical deductibles can be used to fund a Health Reimbursement Arrangement. These funds can then be used to reimburse eligible out-of-pocket expenses.
	5. Enjoy tax advantages and greater control over health care decisions. An HRA contribution will be a business deduction when the funds are spent. A Health Reimbursement Account can benefit employees by giving them the freedom to make more decisions about their health care. HRAs give employees the flexibility to choose how to manage their health care dollars.

Reimbursed out-of-pocket expenses employers pay to employees are tax deductible, which can increase employer savings.

Another exciting aspect of the HRA is that the reimbursements employees receive are not taxable income.

Refer to PLAN for full disclosure.

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