Section 105 Plans/(HRA) Health Reimbursement Accounts

DEFINITION
A Section 105 Health Reimbursement Arrangement (HRA) Benefit Plan allows a business to reimburse employees for qualified medical expenses and deduct them at 100% as an employee benefit expense.

Sole proprietors and partners in a partnerships may qualify if they are married and are able to legitimately employ their spouse.

The plan provides 100% tax deductibility for:

• Health Insurance Premium
• Dental Insurance Premium
• Disability Insurance Premium (benefits subject to taxation)
• Cancer Insurance Premium
• Catastrophic Coverage Premium
• General-Purpose Medical, Dental, Optical Expenses

The HRA can be designed to:

• Partially self-insure high deductible health plans
• Include rollovers of unused balances
• Fund retiree medical expenses
• Reimburse employees for eligible insurance premiums
• Reimburse dental and vision expenses

The plan allows you to participate without changing your current insurance coverage. Coverage must be in the name of the employee.

Most HRA Plans are subject to Medicare Secondary Payer Reporting, which requires Benefits Design Group, Inc. to mandatorily report information to the Centers of Medicare and Medicaid about HRA participants and their dependents.  To learn more about the mandatory reporting rules, click here Mandatory Medicare Reporting Information

BENEFITS DESIGN GROUP, INC. PROVIDES:

• A plan designed to your specifications
• A formal plan document prepared by legal counsel
• Assistance in setting up employer-employee relationship with spouse (if applicable) 
• All necessary forms and information regarding filing requirements
• A toll-free number to respond to questions
• Maintenance of all account records
• Verification of expenses
• Year-end summary of benefits