Health Reimbursement Arrangement (HRA)
Health Reimbursement Arrangement (HRA)
For employers wanting to get employees more engaged in their
health care decisions, a Health Reimbursement Arrangement (HRA)
from Nippon Life Benefits may fit the bill.
An HRA is an employer-funded and -designed program to help
employees:
- Pay for expenses eligible for reimbursement,
- Meet deductibles and/or coinsurance, and
- Encourage involvement in health care decisions.
Nippon Life Benefits offers three HRA reimbursement options:
HRA First
The HRA pays expenses eligible for reimbursement first,
and the employee covers the remaining portion of the deductible
and/or coinsurance.
Employee First
The HRA pays expenses eligible for reimbursement
after the employee covers a set part of the deductible
and/or coinsurance.
HRA Share
The HRA shares expenses eligible for reimbursement with
the employee for each medical claim that applies to the deductible
and/or coinsurance. The employer sets the percentage of the
split.
Distributions are considered tax deductible (to the employer).
Reimbursement dollars received by the employee are generally tax
free.