Improve Healthcare Benefits, Lower Expenses & Taxes with HRAs
Sterling HSA, a health services administrator with deep experience in the health insurance and banking industries, also offers a Health Reimbursement Arrangement (HRA) for employers. We offer two, very competitively priced plans, debit cards, and onsite education and support for plan setup and enrollment. We also provide a level of high touch customer service and industry expertise that has placed us among the nation's top health savings account administrators since Sterling was founded in 2004.
Health Reimbursement Arrangements (HRAs) are defined contribution plans that employers own and control for the benefit of their employees. HRAs are 100% employer funded and represent an employer's commitment to pay for certain healthcare expenses for their employees. Employers set the coverage "rules" for HRAs, but they are governed by Section 105(H) of the IRS Code.
HRAs are a great option for employers and employees because of the tax advantages and benefits in how healthcare expenses can be paid. Employer reimbursements for qualified healthcare expenses are tax-deductible for the employer and tax-exempt for employees in the HRA.
As an employer, you have broad latitude to establish the rules for contributions and reimbursements. You can change the rules as business conditions dictate. You can choose:
- How much to reimburse, in what amounts and in what order. You can decide if the employer or the employee will pay first.
- When to reimburse. Employers can decide to fund monthly, quarterly or annually and in which plan year. You can also set a funding limit so that additional funding isn't allowed until the account balance falls below the limit.
- What to reimburse. Just the deductible or a broad range of healthcare expenses defined in Section 213(d) of the IRS code.
- If funds will rollover to the next plan year.
- Who to cover. Employees only or employees and their dependents.
- What health plans to combine with an HRA. Carrier approved HMOs or traditional and high deductible PPOs.
For more information, go to Products and Services, HRAs. For information on Health Savings Accounts and Premium Only Plans, also see our Products and Services section.