Critical HRA Components
- Funded by employers,
- Employers set parameters with the ability to change contributions at any time,
- Unused funds remain with the employer without “following” employee to new employment situations;
- Employees reimbursed for “approved” medical expenses; and
- No minimum or maximum contribution levels for employer contributions.
Some Benefits of HRAs
- Distributions can be made to current or former employees;
- Spouses and dependents can receive reimbursements;
- Employers are not mandated to prepay monies into the fund;
- Employers can define “qualified medical expenses;”
- Employer contributions are excluded from gross pay of employees;
- Reimbursements of qualified medical costs are tax-free.
If you are considering establishing an HRA for your business in or around Sonoma County, California, contact Sackett & Associates Insurance Services. We have been serving Northern Bay Area individuals and businesses for their health insurance needs for over 30 years. Sackett & Associates Insurance Services offers valuable and free quotes for you and/or your business to find affordable, effective healthcare solutions.