Health Reimbursement Accounts

Health Reimbursement Accounts under Section 105(h) of the Internal Revenue Code permit employers to reduce health insurance costs by raising the deductible of their basic health insurance coverage and contributing the savings into such accounts for their employees. This provides employees with an incentive to spend their health care dollars wisely. By integrating the plan with the company's health insurance plan, it may be possible to give greater benefits for highly-compensated and key employees.