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INSURE BLOG CONTINUES HRA PRIMER
July 06, 2005
Insurance Broker Henry Stern has the second installment of his HSA-HRA series up at the Insureblog. It starts out:
So what, exactly, is an HRA? Well, it’s a tax-advantaged Health Reimbursement Arrangement that allows an employer to reimburse employees (and/or their dependents) for some of their medical expenses. In this regard, it’s similar to the Health Savings Account (HSA), because it means that the employer can help the employee by cushioning the blow on a major claim. And, the same kinds of expenses that are approved for reimbursement on an HSA plan are okay for HRA, as well.
So what’s the difference? It really comes down to who contributes the money for reimbursement, and who ultimately owns that money.
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