With an HRA account, employers fund individual reimbursement accounts for their employees and define what those funds can be used for.
A health reimbursement account is an IRS-sanctioned program that allows an employer to set aside funds to reimburse medical expenses paid by participating employees. This yields tax advantages for both the employee and the employer.
Through a health reimbursement account, business owners can reimburse employees for individual health insurance premiums, which typically costs less than half of what group coverage does. Larger companies have used HRAs for years as a way to manage their healthcare expenses, but smaller companies have often been intimidated by the rules and paperwork involved in setting this up. At Bridgeport, we can help explain the entire process and get it set up for you in no time!
So, if you are interested in saving money on health care costs for your employees, contact us right away. We look forward to helping your business save money today.