Health Reimbursement Arrangement (HRA)

Health Reimbursement Arrangement (HRA)
For employers wanting to get employees more engaged in their health care decisions, a Health Reimbursement Arrangement (HRA) from Nippon Life Benefits may fit the bill.

An HRA is an employer-funded and -designed program to help employees:

  • Pay for expenses eligible for reimbursement,
  • Meet deductibles and/or coinsurance, and
  • Encourage involvement in health care decisions.

Nippon Life Benefits offers three HRA reimbursement options:

HRA First
The HRA pays expenses eligible for reimbursement first, and the employee covers the remaining portion of the deductible and/or coinsurance.

Employee First
The HRA pays expenses eligible for reimbursement after the employee covers a set part of the deductible and/or coinsurance.

HRA Share
The HRA shares expenses eligible for reimbursement with the employee for each medical claim that applies to the deductible and/or coinsurance.  The employer sets the percentage of the split.

Distributions are considered tax deductible (to the employer). Reimbursement dollars received by the employee are generally tax free.