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HRA Participant Benefits

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. If the employer chooses, employees' dependents may also be covered.

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.

On behalf of their employees, employers establish the parameters for HRA contributions and reimbursements. Regardless of the employer rules, employees enjoy the benefits of reduced out-of-pocket expenses.

Unlike health savings accounts, employees cannot participate in an HRA except as part of their employer's health insurance plan.

For more information on HRAs, go to Products and Services, HRAs.

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