Benefits to the employer:

• Can pair with a higher deductible plan, which may help save on premium
• Helps provide quality benefits while controlling costs — you may avoid paying for coverage your employees don’t use
• This unfunded approach allows payments to be made from employer’s general assets
• Flexibly designed:
  • Timing of HRA fund availability
  • Amount of HRA
  • Who pays first — employer or employee

Benefits to the employee:

• HRA can help offset increased out-of-pocket expenses of higher deductible
• Lower monthly premiums can reduce employee share of cost
• HRA reimbursements are tax-free
• Increases employee awareness of true cost of health care
• If allowed by employer, HRA rollover option encourages wise spending choices