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New York Health Reimbursement Accounts
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The Health Reimbursement Account (HRA) is designed for companies employing
two or more people, excluding sole proprietorships and owners of subchapter-S
corporations. Employer funds are used to reimburse employees for qualified
medical expenses in accordance with an employer / employee arrangement.
Internal Revenue Service requirements for qualified medical expenses will also
apply. Employer payments are a tax deductible business expense and
reimbursements to employees are tax free.
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Only employer funds are involved in a Health Reimbursement Account so the
employer determines the amount to reimburse each year, the amount that can
be carried over each year, when to make reimbursements, whether the
employee or the employer pays first, what happens when an employee leaves
the company and what is the maximum an employee can accumulate. The
employer may have other options available, too.
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Every year an employer puts money aside in an HRA to help an employee pay for
eligible medical expenses. The employee pays no taxes on the money and
manages the account. If the employee uses all of the money in their account,
they pay the rest of the deductible out of their pocket. If an employee has unused
money in their account at the end of the plan year, some HRA plans allow the
balance to be applied to the following year. An employee will typically forfeit the
money in their HRA account if they leave the company since all funds are owned
by the employer.
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Direct Access
Group Benefits, Inc.
340 Route 202
Somers, New York 10589
Westchester County, NY
Toll Free: 1-800-498-1819
(914) 276-6000
Fax: (914) 276-6002
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HRAnewyork.com
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1-800-498-1819
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1-800-498-1819
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Health Reimbursement Accounts (HRA) are a way for an employer to get into
the self funding arena without the potential risk of a fully self-funded program.
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Uses All Employer Funds and Employer Makes All the Decisions
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Reimburses Employees for Medical Expenses and Allows Carry-over
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Copyright 2008-2011 Direct Access Group Benefits, Inc. - All rights reserved
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Account Administration by the Company or Third Party Administrator
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Contact us today
for a free quote!
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