Stand-alone allow health reimbursement accounts (HRAs) employer employee medical expenses reimbursed tax free. A stand-alone HRA is a type of Medical Reimbursement Plan . To understand how a stand-alone HRAs work, it is helpful to understand what is a HRA and how they are used. 
What is an HRA?
an HRA a formal agreement between the employer and the employee reimburse certain medical expenses tax-free.
We will cover the specific rules later, but the basic idea is that a HRA is like a business expense account for healthcare.
What kind of a stand-alone HRA?
A stand-alone HRA is not paired with a group health insurance. Instead, the HRA is offered as a stand-alone health benefits - often as an alternative to group health insurance. Employers use alone HRAs employees for individual health insurance premiums and / or other out-of-pocket medical expenses to be reimbursed.
That being said, because of the health reform, stand-alone HRAs are limited for some employers. We are about this next.
speak, use a stand-alone HRA?
Under the current rules and regulations, stand-alone HRAs are compatible refund option:
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company an HRA participants (eg a C-corp owner or a-person non-profit organization). Note: .. tax benefits for some types of owner limited
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companies an independent HRA retiree benefits of
Read about one-person stand-alone HRAs here
example -. How to give a stand-alone HRA Works
you like a stand-alone HRA works an idea, here is an example:
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Sally is a holder of a C-Corporation without W2 employees. She wants to save the tax on the cost of their personal health insurance premiums and other medical costs.
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The company relies on a stand-alone HRA for Sally. When they set up the plan to determine a monthly contribution amount of $ 500.
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Sally buys individual health insurance and $ 450 / month will pay for family coverage.
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Sally submits documentation to their HRA software vendors showing proof of their premium cost health insurance. The HRA software checks the costs and approve their request. paid $ 450 / month
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Sally of the HRA.
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The unused $ 50 accrues monthly and Sally that extra money for them out of pocket expenses to be reimbursed for medical care (such as co-payments for doctor visits may or recipes). get a closer look at the rules
For a better understanding of stand-alone -
stand-alone HRAs HRAs, it is helpful that health reimbursement account to understand rules , govern the HRAs. To summarize: -
Only employer can contribute, and there are no minimum or maximum fee is
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Eligible medical expenses are defined by the IRS, and the employer may be further limited categories. Expenses can include medical costs and health insurance premium amounts.
must be submitted -
documentation for each eligible medical expenses before reimbursement.
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reimbursements to the employer and tax-free to the employee generally tax deductible.
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, the employer requires control of the plan, contribute as much, among other things, employee eligibility, which at the end of the plan year, qualified medical expenses, etc.
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to agents happens HRAs § 105 group health plans are taken into account, and as such must comply with IRS, HIPAA, ERISA, COBRA, and correspond to the ACA regulations. These include documents have formal HRA plan.
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employees must participate not be covered under another health plan. HRAs can with a group health insurance (an "integrated HRA") offered or as a stand-alone utility ( "stand-alone HRA").
Only employer can contribute, and there are no minimum or maximum fee is
Eligible medical expenses are defined by the IRS, and the employer may be further limited categories. Expenses can include medical costs and health insurance premium amounts.
must be submitteddocumentation for each eligible medical expenses before reimbursement.
reimbursements to the employer and tax-free to the employee generally tax deductible.
, the employer requires control of the plan, contribute as much, among other things, employee eligibility, which at the end of the plan year, qualified medical expenses, etc.
to agents happens HRAs § 105 group health plans are taken into account, and as such must comply with IRS, HIPAA, ERISA, COBRA, and correspond to the ACA regulations. These include documents have formal HRA plan.
employees must participate not be covered under another health plan. HRAs can with a group health insurance (an "integrated HRA") offered or as a stand-alone utility ( "stand-alone HRA").
are paired understand these rules, you can gain a broader understanding of how stand-alone HRAs can for your business .
plans similar to stand-alone HRAs
stand-alone HRAs are an option for medical expenses reimbursement. Similar reimbursement plans include:
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health reimbursement plans (HRPs) - employer reimbursement plans that enable companies of any size an individual refund Health insurance
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Health Savings Accounts (HSAs) -. Individual bank accounts of staff in possession, allowing for tax-free payment or reimbursement of eligible medical expenses
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Health Flexible Spending Accounts (FSAs) - , Employer-benefit plans for tax-free reimbursement of eligible permit medical expenses.
To read more about the different types of medical reimbursement plans and see a comparison table click here.
What questions do you have about how stand-alone HRAs work? Leave a comment. We will help you to answer your questions.
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