What is a medical reimbursement account?

A medical reimbursement account, also known as a Health Reimbursement Account (HRA), is a health plan which reimburses certain healthcare expenses. In Tennessee, these are usually funded by employers and offered as an employee benefit. Funds from an HRA can cover expenses such as co-pays, deductibles, and certain prescription drugs. Additionally, these accounts can also be used to pay for routine medical expenses such as annual physicals or check-ups. In Tennessee, medical reimbursement accounts are governed by the Employee Retirement Security Act (ERISA). This federal law requires employers to set up and administer the accounts in a specific way and sets limits on how much money they can contribute. The employer is usually responsible for deciding which eligible expenses to reimburse. HRAs are a great benefit for Tennessee employees because they can help reduce the amount of out-of-pocket expenses that an employee needs to pay. Additionally, they can also provide peace of mind and financial security. While the funds in an HRA are not portable, they can be used to pay for medical expenses incurred in any state. Overall, medical reimbursement accounts are a great benefit for Tennessee employees. They provide peace of mind, financial security, and can help reduce out-of-pocket costs. Employers should be aware of their ERISA obligations when setting up and administering HRAs for their employees.

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