Employers fund and own HRAs, so you decide how much to contribute. You can deduct reimbursed employee health care expenses as business expenses and exclude them from your employees’ gross income.
Employees can get money back, tax-free, for out-of-pocket eligible health care expenses, up to a fixed dollar amount each year. Employers fund the account, but it doesn’t count as taxable income. That means employees use tax-free dollars to pay for certain health care expenses. And unused funds can roll over to the next year.
Want to provide extra convenience? Offer the PayFlex Card to your employees. It provides instant access to their funds for eligible expenses at qualified merchants.
Check out the list of common eligible health care expenses. Use the search bar to find specific items and services. Or you can click on the column headers in the table to see which are eligible, eligible with a Letter of Medical Necessity (LOMN), or not eligible.