HRA
The Health Reimbursement Arrangement (HRA) is an IRS regulated, employer-sponsored benefit plan that allows participants to receive reimbursement for eligible out-of-pocket healthcare expenses. Contributions made through an HRA are 100% employer funded, so they are entirely free of federal, state and Social Security taxes.
Health Reimbursement Arrangement
The Health Reimbursement Arrangement allows for certain healthcare expenses to be reimbursed. Employer contributions are placed in a special account to be used by participants for eligible expenses. Participants may receive reimbursements up to the total amount contributed by the employer.
There is no income tax reporting required when participating in this account. The employer-funded contributions are free of federal, state and (in most cases) Social Security taxes and do not even appear on a W-2 as reported income.
Reimbursements are received by faxing, emailing or mailing claims and supporting documentation directly to Chard Snyder. Supporting documentation can be a receipt, a bill, an explanation of benefits summary and/or any documentation that provides the date of service, the type of service and the amount. After the claim has been reviewed and the expense approved, payment is then issued to the participant via direct deposit or a check. Claims are processed daily and payments are issued at least once per week.
Reimbursements are only issued for employer specified eligible out-of-pocket healthcare expenses and for qualifying insurance premiums incurred by a participant, a former participant, their spouse or their dependents, as permitted by the employer. Funds remaining in the account at the end of the plan may or may not be carried forward into the next plan period.
The employer determines eligibility for this benefit (within discrimination requirements) and the contributions to be provided. An employer may require reimbursements to be issued from the Healthcare FSA first (if applicable) before HRA funds can be utilized.
