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Medical Reimbursement Plans are IRS-approved health plans that allow for tax-free reimbursement for medical expenses. There are a few different types of Medical Reimbursement Plans including: Health Reimbursement Arrangements (HRAs), Healthcare Reimbursement Plans (HRPs), Health Savings Accounts (HSAs), and Health Flexible Spending Accounts (FSAs). Medical Reimbursement Plans can be used alongside a group health insurance plan. Or, the Medical Reimbursement Plan can be offered as the main health benefit plan, usually instead of a group health insurance plan. Because the reimbursements occur pre-tax, employees and employers often save up to 50% in combined taxes on the cost of medical expenses. The sections outlined on our navigation bar provide more information about the types of Medical Reimbursement Plans available, and how they are used.

Health reimbursement plans

Your HRA and health FSA, while separate accounts, provide reimbursement of qualified medical expenses that are defined by your employer and the IRS. A HRA balance cannot be cashed out, rolled over into another plan, or used for any purpose other than reimbursement of eligible medical expenses.

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