The Aetna HealthFund® Health Reimbursement Arrangement (HRA)* helps businesses stay on top of health care costs in a number of ways. Employers are solely responsible for contributing to the fund, so they can better manage their health care budgets for the year. And they can deduct reimbursed employee medical expenses as a business expense. Also:
*HRAs are currently not available to HMO members in California and Small Group members in Florida.
Question | Answer |
---|---|
Who is eligible? | All employees, as designated by employer |
Who can contribute? | Employer only |
Does the balance carry over? | Yes – plan can define carry-over limit; HRA balance can carry over to RRA. |
Can rollover contributions from another account be made to this account? | No |
Is the fund or account portable? | No |
Are there interest or investment earnings? | No |
What are the tax advantages? | Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements are excludable from the employee's gross income |
Are contributions taxable income to the employee? | No In addition, contributions are not subject to FICA or FUTA taxes |
Are distributions ⁄ reimbursements taxable income to the employee? | No |
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