Reimbursement Accounts (2025)

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Reimbursement Accounts (10)

Now your people can save and feel secure with strategic cost-saving reimbursement accounts.

Start with more support

Putting money aside for now or what’s to come matters to your people. And your benefits strategy. Our suite of reimbursement accounts supports healthcare, child care, transportation, education costs and more — the things your people want now and your next talent is looking for.

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Here’s the Challenge

Premiums keep skyrocketing

As healthcare and other costs rise, employees fear out-of-pocket spending. You want to protect them with competitive benefits while managing costs yourself.

Here’s how we solve it

Help people find their balance

You need a simple reimbursement account solution that actually saves and supports your benefits plan.

Turn spenders into savers

Educational resources communicate the value of an HSA or FSA, so your people know the power behind their reimbursement options.

  • Lifestyle accounts
  • Health savings accounts
  • Flexible spending accounts
  • Health reimbursement accounts
  • Dependent care accounts
  • Adoption assistance
  • Commuter benefits plans
  • Tuition assistance
Reimbursement Accounts (11)

Strategize your healthcare spend

Together we find which reimbursement accounts are the right fit, ensuring employee adoption and amplifying your benefits investment.

Reimbursement Accounts (12)

Employ one platform

Multiple logins, a multitude of vendors – leave it behind. All of your accounts integrate into the Alight platform – enabling a simple user and payment experience for employees and stronger spending insights for you.

More of what's possible with Alight Smart-Choice Accounts®

For employers

Ensure your people have funds to cover important life expenses with an innovative payment solution and benefits platform in one. Leverage insights that improve business decision making and deliver on employee expectations even if healthcare plans change.

Benefits

  • Consolidate vendors
  • Increase adoption and use of various accounts
  • Track spending trends on analytics dashboard
Reimbursement Accounts (13)

For employees

Give your people help setting aside funds for current and future needs right when they need them. They get access to reimbursement accounts along with enrollment, benefits and customer care all with a single sign on, anytime, anywhere.

Benefits

  • One debit card and login for all account details
  • Real-time transactions and claims processing
  • Free library of resources, calculators
Reimbursement Accounts (14)

Customer story

Reimbursement Accounts (15)

Driving value to a workforce — deploying integrated benefits for H-E-B

Alight is dedicated to providing better benefits support and options to H-E-B’s 100,000 strong workforce through solutions like Smart-Choice Accounts and benefits administration.

Read more

Reimbursement Accounts (16)

Ready to get started?

Learn more about how we can help your business.

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Reimbursement Accounts (2025)

FAQs

Reimbursement Accounts? ›

When you enroll in a health reimbursement account, a predetermined amount is added to the account by your employer. These funds are tax free and aren't reported as income. However, an HRA isn't a bank account. That means you won't be able to earn interest or use the balance to invest.

What is a healthcare reimbursement account? ›

It's an employer-funded group health plan that your employer contributes a certain amount to. You use the money to pay for qualifying medical expenses up to a fixed dollar amount per year. Unused funds may carry over from year to year. For some types of HRA, you can use the money to pay monthly.

What are the IRS rules on HRA accounts? ›

HRA reimbursements are excludable from the employee's income and wages for federal income tax and employment tax purposes. An employer may allow funds that remain in the HRA at the end of the year to carry over into future years.

What is the journal entry for reimbursement? ›

Enter each reimbursement item as a Manual Journal Entry (MJE), debiting the expense, and crediting "Employee Reimbursement - Clearing" (you could do a full expense report in one go or one MJE for each individual receipt).

What are the 3 components of reimbursement? ›

It can be broken down into three major components: coding, coverage and payment (see Fig. 1). The main success criteria for medical device companies after earning FDA regulatory clearance is securing positive coverage decisions from payers.

What are reimbursement accounts? ›

Reimbursement is when a business pays back an employee, client, or other people for money they spent out of their pocket or for overpaid money. Some examples are getting money back for business costs, insurance premiums, and overpaid taxes. In contrast to regular pay, however, reimbursement is not taxed.

What is a disadvantage of a health reimbursement account? ›

The Drawbacks:

Employer Control: Since HRAs are employer-funded, the employer has control over the funds in the account. This means that if you leave your job, you may no longer have access to the funds remaining in your HRA. It's important to consider this aspect when evaluating the long-term benefits of an HRA.

Can I withdraw money from my HRA account? ›

Can Employees Withdraw Money From an HRA Account? Given that HRA coverage is only funded by the employer, employees cannot withdraw HRA funds for purposes outside of the guardrails provided by the IRS. Unused contributions in HRA accounts are either rolled over to the following year or retained by the employer.

What happens to unused HRA funds? ›

HRA funds can be structured to roll over monthly or annually, depending on how the employer sets up the plan. In a monthly rollover, any unused funds at the end of the month may carry over to the next month within the same plan year.

Is a health reimbursement account taxable? ›

Are withdrawals from an HRA taxed? Assets used to pay for qualified medical expenses are not taxed. IRC Section 105 provides tax-exclusion for amounts received as reimbursement of medical care expenses.

How to do reimbursement accounting? ›

How to record reimbursements
  1. Decide whether it's a valid reimbursement. First, evaluate whether this expense is an appropriate billable expense for this client. ...
  2. Keep your receipts. ...
  3. Add reimbursement costs to client bill. ...
  4. Bill client up to agreed-upon limits. ...
  5. Determine whether it's tax deductible. ...
  6. Add to your records.

What account do reimbursements go to? ›

When you reimburse an employee, this will go to the liability account called Employee Reimbursements.

What are the stages of reimbursement accounting? ›

Purpose: To describe the procedures and processes for the four stages in reimbursable accounting; funding; orders received; earned reimbursements, and the collection of accounts receivable.

What does code 99214 mean? ›

CPT® code 99214: Established patient office or other outpatient visit, 30-39 minutes.

What are the four main methods of reimbursement? ›

What are the Methods of Hospital Reimbursement?
  • Discount from Billed Charges.
  • Fee-for-Service.
  • Value-Based Reimbursement.
  • Bundled Payments.
  • Shared Savings.
Jun 29, 2017

What is the most common form of reimbursement? ›

Fee-for-service (FFS) is the most common reimbursement method. In many cases, a health insurer or government payor covers some or all of a patient's healthcare costs. A patient is typically responsible for covering a portion of the cost as well.

Is healthcare reimbursement account worth it? ›

Tax-neutral – One of the major benefits of an HRA is that the employer's contributions do not count toward your gross income. And when you file a claim for a qualified medical expense, the reimbursement is tax-neutral.

Can you take money out of a health reimbursement account? ›

An HRA is not an account. Therefore, employees cannot withdraw funds in advance and then use them to pay medical expenses. Instead, they must incur the expense first, then have it reimbursed.

What does healthcare reimbursement mean? ›

What is healthcare reimbursement? Healthcare reimbursement describes the payment received by a healthcare provider, hospital, diagnostic facility, or another healthcare facility for providing a medical service. Fee-for-service (FFS) is the most common reimbursement method.

What is the difference between HSA and health care reimbursement account? ›

HSAs are owned by individuals, funded through pre-tax contributions, and are portable even if you change jobs. HRAs are typically funded solely by employers, have no individual ownership, and may not be portable.

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