A few important things you should know about Health Reimbursement Arrangements.

• What is a Health Reimbursement Arrangement?
• Health Reimbursement Arrangements (HRAs) are employer funds available to reimburse employees for qualified medical expenses. The terms of these arrangements can provide first dollar medical coverage until the funds are exhausted.
• How are contributions made?
• HRAs are not "accounts." They are typically funded by employers on an as-needed basis, which means that money is available only when there is a need and that availability is dependent on the financial health of the company at the time a claim is made.
• Who controls the HRA?
• The employer may cancel or amend a Health Reimbursement Arrangement at any time.
• Are there any tax benefits to an HRA?
• Health Reimbursement Arrangements are only funded by the employers and can be deducted as business expense when actual distributions are made.
• Who is eligible for an HRA?
• An employee qualifies for HRA funds only while working for the employer and is subject to the terms of the governing plan document.