Health Reimbursement Arrangements (HRAs)

These plans work well for employers who wish to provide help with the rising cost of medical care expenses for their employees.  These plans offer several major benefits - unused funds can roll from year to year, no advance payment of claims, employees can plan for future expenses and control their current medical costs.

Under a Health Reimbursement Arrangement, or HRA, an employer reimburses covered employees for specified medical expenses using corporate funds.  Employees do not pay taxes on these reimbursements and they are tax deductible for the employer.  As the funds can roll from plan year to plan year employees can plan for the future and exercise control over their medical needs.  A representative from our firm will be happy to talk with you and explain HRA Plans in more detail.  Please call PBS, Inc. at 1-800-982-2012 or contact us by email cafeteria@profben.com .  

Plan Setup

• Documents:  Plan Documents, Corporate Resolution
• Claim Forms
• Annual Non-Discrimination Testing
• Fees

Plan Benefits

• Effective, regardless of company size
• Employer has tax deduction
• Employee receives funds as nontaxable
• Employer sets eligibility, type of eligible expenses and any maximums
• No employer reimbursements if there are no employee expenses.  Unused funds roll from plan year to plan year
• Employees can plan future medical needs

Additional work outside of regular administration will be billed at our normal hourly rate

Related Information

• Unused funds may roll forward from plan year to plan year.
• Employees can plan for future needs.