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The introduction of Health Reimbursement Arrangements (HRAs) has provided a unique opportunity for a company to meet the healthcare needs of their employees while satisfying corporate financial objectives. An HRA is an employer-funded account used to reimburse employees for qualified medical-related expenses on a non-taxable basis. HRAs were issued under Treasury and IRS Notice 2002-45 and Revenue Ruling 2002-41.

This employer - funded arrangement can help the company mitigate the rising cost of health care by combining innovative plan design with the proven Flores reimbursement process. As an example, a company could increase their existing $500.00 deductible to $1,000.00 per covered life. This adjustment will result in an appreciable decrease in their plan cost. By using an HRA they can then cover the additional $500.00 in deductible cost for their employee. This in essence does not change the employee's real cost. Since deductibles rarely come into play, except for in-patient or out-patient procedures, the amount saved in premiums and taxes will more than offset the additional $500.00 employer cost.

Flores will assist you and/or your consultant in plan design, employee communication and implementation. Additionally, we provide complete plan management services including compliance maintenance, claims verification, electronic reimbursement issuance, detailed explanation of benefits, real time reporting, on-line access to complete account information via our floresinfocenter.com site, and personalized account management expertise.

The key benefits of an HRA Include:

  • Opportunity to achieve significant savings on your medical
  • Premiums - without negatively affecting employee morale
  • Reimbursements qualify as a business expense for the employer
  • Keeps healthcare affordable for your employees by offsetting additional out-of-pocket expenses
  • The reimbursement is tax free for your employees
  • Tax deduction for dollars put into the Employer Funding Plan.

As the face of health care changes, Flores stands ready to meet the evolving need of our clients and their employees by using our proven processes and innovative technology.