Premium Reimbursement Accounts (PRA)
Premium Reimbursement Account (PRA)
- What is a PRA?
- Important Facts to know about a PRA
Premium Reimbursement Accounts are accounts that allow you to take a pre-tax reduction from your paycheck for privately purchased insurance.
- These insurance plans cannot be part of a group plan.
- Premium reimbursement Accounts are typically used for health, dental and vision plans.
The cost of your premium can be paid with pre tax dollars.
- An election must be made at the beginning of your plan year.
You cannot change your election during the year unless you have a qualifying event.
- If you do not make a new election each year; your current election will automatically rollover each plan year.
- Each pay period you will have pre tax payroll deductions taken from your paycheck.
- You will need to submit a claim form with your invoice monthly to HRC to be reimbursed for your premiums with your pretax dollars that were withheld from your paycheck.
- You are responsible for paying your provider with the reimbursement.