- Employers can provide an HRA program to employees on a pre-tax basis with IRS blessing. Unused funds remaining in the account at the end of the year can be carried forward into subsequent years.
- What Benefits Can an HRA Provide?
- Code section 213 medical expenses (including health insurance premiums and long-term care premiums).
- HRA may be offered in conjunction with a cafeteria plan.
- Employers can offer both an HRA and an FSA. The HRA may pay before the FSA, or the FSA can pay before the HRA.
- HRAs are subject to COBRA continuation requirements. There are general rules for the determination of COBRA benefits and premiums.
How HRA Plans Work?
Plan Design Suggestion
| Employee Communication and Information | |||
| Appropriate SPD Documents | |||
| Preventive Benefits |
FSA + HRA |
High Deductible PPO Health Plan |
Web Based Administration |
| Consumer Information & Education | |||
