Medical reimbursement plans are approved by the IRS and offer tax advantages to employees with medical expenses. They can be offered as part of an employee insurance benefit plan or stand alone as the primary medical cost coverage. There are a few different plans:
- Health Reimbursement Arrangements or HRAs
- Health Savings Accounts or HSAs
- Flexible Spending Accounts or FSAs
Health Reimbursement Arrangements (HRAs)
These are funded by the employer and offer tax advantages to them. They are used to reimburse employees for qualified medical expenses.
- For larger companies, a group HRA is often paired with a high-deductible insurance plan to help reimburse employees
- For companies with less than 50 full-time employees, an HRA can be offered as a stand-alone plan that offers tax-free reimbursement for a range of medical expenses including employees’ health insurance premiums.
Health Savings Accounts (HSAs)
An HSA is owned by the employee as a bank account that allows for tax-free payments of insurance premiums and eligible expenses. It is often offered by employers along with a high-deductible insurance plan.
Flexible Spending Accounts (FSAs)
These are created by the employer and allow employees to be reimbursed for eligible expenses on a tax-free basis.
Employee healthcare plans can be a complex subject for employers and employees alike. If you need help communicating your healthcare insurance options to your employees let First Day Films help with our employee benefits videos. We offer a wide range of video education services and can create custom communications for your company. For more information contact First Day Films at 833-422-7332.