What is a Health Reimbursement Account?

A Section 105 Plan allows the employer to set up accounts to fund certain types of medical
expenses for their employees. Only participants in the employers group health plan can
participate but the employer can be even more specific about who gets an account and what
qualified medical expenses the employer will reimburse.

Most employers use HRA’s to fund all or a portion of the employee’s deductible. For the
employee, the reimbursement is tax free. For the employer, the reimbursement is a business
expense. Everyone wins. We set up and administer the plan from beginning to end.

Qualified Small Employer Health Reimbursement Accounts

A Qualified Small Employer Health Reimbursement Account is a benefit that Small Employers
under 50 (not an ALE) can offer to their employees to reimburse for individual health
insurance premiums and qualified medical expenses. The Employer must not offer a group
health insurance plan of any kind in order to provide this benefit to their employees.

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