MBO offers a Health Reimbursement Arrangement through the Corporate Services program.
An HRA is an IRS approved platform that provides tax savings on medical expenses through an employer health benefit plan. As owners of a C-corporation, you can legally deduct 100% of family healthcare premiums and uninsured medical expenses through a Health Reimbursement Arrangement (HRA).
There is no need for health benefit funds to accumulate in a separate account.
As an IRS-approved tax-advantaged benefit plan, a Health Reimbursement Arrangement is a simple, effective way to supplement health insurance benefits and pay for a wide range of medical expenses not covered by insurance with pre-tax dollars.
With an HRA, corporations ultimately reimburse employee-incurred out-of-pocket health expenses with tax-free funds. Employees receive reimbursements through payroll without being taxed. In addition, corporate reimbursements are not subject to the employer FICA tax. These benefits can add up to 50% in combined tax savings on the cost of a medical expense.