Used in conjunction with CHM membership, the Health Reimbursement Arrangement (HRA) is a great way to save money for your family or business.
An employer-sponsored HRA uses tax-deductible dollars to make your health care dollars go even farther. An HRA is an employer-established benefit plan that can be offered as a complete program or it can be combined with other employer-provided health benefits.
How an HRA works:
1. The employer or ministry administrator sets up the HRA.
2. The HRA is funded by the employer/ministry (employees cannot fund an HRA).
3. Employees are reimbursed tax-free for qualifying medical expenses (including dental, vision, etc.). Unused funds can be rolled into future years for reimbursement.
4. Benefits to the employer include a tax deduction on reimbursement of qualified expenses and considerable flexibility in plan design.
In nearly every case, an HRA combined with CHM membership can save employees and employers thousands of dollars every year compared to the high costs of a health insurance policy.
HRAs have technical requirements that must be satisfied to qualify as a benefit for employees. For more information, consult IRS Publication 969 at www.irs.gov/publications/p969/ar02.html.
Don't qualify?
Even if you don’t qualify for an HRA, please note that even an after-tax savings account can function as a health savings option. Therefore, individuals in any employment situation can apply these principles to take control of their health care costs.
Download a brochure about the HRA