A Health Reimbursement Arrangement Account is set up by the Employer in order to offset the cost of a High Deductible Health Care Plan for their employees. Through careful consideration of the current Health Insurance Plan, PAI can help you determine if this would be a cost effective benefit to offer your employees. An HRA is funded solely by tax deductible Employer Contributions and the contributions required are funded on a post-claim basis. For example, a covered employee must present eligible documentation that falls within the parameters of the Plan Year prior to the Employer funding the claim. Typically, the Employer will post a minimum Escrow of $5,000 which is deposited in our Trust Account so that we have the ability to pay eligible claims as they are presented without disturbing the Employer for each claim payment. Under an HRA Plan, the Employer determines what items are eligible for reimbursement and at what rate (100% or a given percentage determined by the employer). Most employers require that the employee be responsible for some portion of the deductible before access to the HRA Benefit is allowed. PAI, Inc. can assist you in determining what would be the most beneficial plan design for your benefit offerings.