• What is an HRA?
• HRA Checklist
• HRA Qualified Expenses 

Benefits for employees and employers

• HRAs are the newest way for employers to give their employees freedom of choice in healthcare planning while controlling their own costs.

• HRAs are similar to Flexible Spending Accounts (FSAs) except that employees never lose their money at the end of the year because unused dollars are automatically rolled-over into the next year.
• HRAs are similar to Medical Savings Accounts (MSAs) except that they are provided by employers for their employees.
  (See Medical Savings Accounts (MSAs) vs Health Reimbursement Arrangements (HRAs))
  MSAs are NOT FSAs are NOT HRAs - Confused about consumer-driven health plan options? You're not alone.
  This side-by-side comparison highlights the pros and cons of MSAs, FSAs and HRAs

• HRAs combine the roll-over of unused dollars (the feature that makes MSAs attractive to individuals) with the lower costs that groups get. Generally, employer healthcare programs are less costly for everyone because employers can get group rates. Many individuals have found that the cost of care is higher with MSAs because it is harder for the individual to negotiate costs with doctors, hospitals and other healthcare providers.

• HRAs means that employees get the lower rates and the quality of care that larger groups usually provide.
• HRAs permit the employee to accumulate money for future healthcare needs - such as retirement healthcare expenses.
• HRAs allow employers to move to defined contribution funding of healthcare.
• HRAs reintroduce the concept of catastrophic medical insurance. They allow an employee to choose a high deductible healthcare plan - and allocate the savings to the HRA for future healthcare expenses, this year or years into the future.

• HRAs are expected to reduce the number of uninsured in the U.S. by providing funds that employees may use for their dependents' healthcare coverage.
• HRAs will provide money for COBRA premiums, which also will reduce the number of people who find themselves temporarily uninsured.

• HRAs are authorized by the U.S. Treasury Department and were announced on June 26, 2002.
  
  The Treasury Department announcement and supporting technical information are available at the U.S. Treasury Department website.
• HRAs are embraced by the leading practitioners in the employee benefits field as well as by the most innovative trade group.
  
  The first public meeting between Treasury Department officials and the leading designers, insurers, attorneys and administrators of employer-sponsored healthcare plans was held in Washington, D.C., on July 11, 2002. The meeting was sponsored by the Employers Council on Flexible Compensation. A summary of important guidance for employers, developed by the Employers Council on Flexible Compensation, is available at the Council's website
• Benico, Ltd. can provide you with HRA Document Service.