Employer Designed Benefit
Presently Formula Benefits has over 100 public and private sector clients utilizing our HRA administrative services.
Advantages of HRAs for employers include:
- Reimbursements of qualified claims are tax-deductible.
- Unused funds can either be rolled over or reverted back to the employer.
Advantages of HRAs for employees include:
- No use–it-or-lose-it rule like FSA’s.
- HRAs may be offered in conjunction with other employer-provided health benefits including Flexible Spending Accounts.
- Employees do not have to be covered under any other healthcare plan to participate, unlike a Health Savings Account (HSA) which requires a High Deductible Health Plan.
- Employees can be reimbursed for a expenses that meet their or their families' specific needs, as opposed to a traditional plan.