Health Reimbursement Arrangements (HRAs)

Helping employees maximize their healthcare dollars

An HRA is an employer-funded, tax advantaged health benefit used to reimburse employees for out-of-pocket medical expenses and personal health insurance premiums.

Through HRAs, employers reimburse employees directly only after the employees incur approved medical expenses. This feature is especially helpful for businesses that want to retain control over their cash flow.

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Advantages of an HRA

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    Added Coverage: Supplement a group Health Plan with an account to easily help employees bridge the gap of out-of-pocket costs

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    Tax Benefits: All employer contributions to the plan are 100% tax deductible to the employer and tax-free to the employee

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    Flexibility: The HRA is the employer’s way to offer a “self-funded” health benefit with control over the cash flow and fund utilization.

More Benefit Spending Account Options

Benefit spending accounts are NOT deposits or obligations of UMB Bank, N.A. and are NOT insured by the FDIC.

All mention of taxes is made in reference to federal tax law. Neither UMB Bank n.a., nor its parent, subsidiaries, or affiliates are engaged in rendering tax or legal advice and this document is not intended as tax or legal advice.