Health Reimbursement Arrangement Plan (HRA)

PURPOSE

1.	DEFINITIONS AND CONSTRUCTION

1.1.	Definitions
1.2.	Principal Entities
1.3.	Determination of Contribution and Other Definitions
1.4.	Construction

2.	PARTICIPATION AND NOTIFICATIONS

2.1.	Participation
2.2.	Notifications

3.	CONTRIBUTIONS

3.1.	Employer Contributions On and After [DATE]
3.2.	Contributions by Participants

4.	ADMINISTRATION

4.1.	Fiduciary Responsibility
4.2.	Appointment of Committee
4.3.	Claims Procedure
4.4.	Records and Reports
4.5.	Other Committee Powers and Duties
4.6.	Rules and Decisions
4.7.	Notifications and Forms
4.8.	Indemnification of the Committee

5.	EMPLOYER RIGHTS

5.1.	Non-guarantee of Employment
5.2.	Action by Employer
5.3.	Amendments
5.4.	Successor Employer
5.5.	Right to Terminate

Document Description:

A Health Reimbursement Arrangement Plan or a Health Savings Account is a benefit program that allows an employer to provide its employees with funds for out-of-pocket medical expenses (such as dental fees, eyeglasses, hospital bills, etc) that are not covered by a health plan or medical policy. Essentially it allows employees and their dependents to obtain reimbursements for eligible medical expenses. Implementing such a plan can be mutually beneficial for the employer and employee, as it acts as an employee incentive and is 100% tax deductible for the employer.

This agreement is appropriate for employers of all sizes. In this template, the employer defines which employees can participate, the payment frequency, administration of the plan, etc.