Should you consider offering a Health Reimbursement Arrangement (HRA) plan?
During Year 2019, the Internal Revenue Service, the Department of the Treasury, the Department of Labor and the Department of Health and Human Services issued final rules regarding Health Reimbursement Arrangements (HRAs). For details see IRS Publication 969 and Publication 15-B (QSEHRA). Since then, several third-party-administrators (TPAs) have provided small businesses with HRA administration.
Private medical practices should consider an HRA plan as a budget conscious approach to providing healthcare to its employees. An HRA plan is an alternative solution to expensive group health plans.
The HRA, tax-advantaged program, reimburses the employee for qualified expenses, which include health insurance premiums for Minimum Essential Coverage (MEC) health plans. See IRS Publication 502. An HRA plan allows the practice flexibility to offer different combinations of benefits to its employees. Contributions made by the practice are excluded from the employee’s gross income.
Private medical practices should consider an HRA plan as a budget conscious approach to providing healthcare to its employees. An HRA plan is an alternative solution to expensive group health plans.
The HRA, tax-advantaged program, reimburses the employee for qualified expenses, which include health insurance premiums for Minimum Essential Coverage (MEC) health plans. See IRS Publication 502. An HRA plan allows the practice flexibility to offer different combinations of benefits to its employees. Contributions made by the practice are excluded from the employee’s gross income.
