In order to establish a Health Reimbursement Arrangement (HRA), it MUST

In order to establish a Health Reimbursement Arrangement (HRA), it MUST

• A. Be established by the employer
• B. Be established by the employee
• C. Be established by the government
• D. Be established by a physician

Answer: (A)

Health Reimbursement Arrangements are plans created and funded by the employer as part of a group health benefits package. The employer designs the plan rules, sets eligibility, and contributes funds that reimburse employees for qualified medical expenses. Because the arrangement exists only through the employer’s action and funding, an HRA must be established by the employer. Employees cannot establish an HRA themselves, and the government or a physician does not set up HRAs. The employer’s role in creating and maintaining the plan is essential, making that option the correct one.

Health Reimbursement Arrangements are plans created and funded by the employer as part of a group health benefits package. The employer designs the plan rules, sets eligibility, and contributes funds that reimburse employees for qualified medical expenses. Because the arrangement exists only through the employer’s action and funding, an HRA must be established by the employer. Employees cannot establish an HRA themselves, and the government or a physician does not set up HRAs. The employer’s role in creating and maintaining the plan is essential, making that option the correct one.