In addition to his work as principal and manager of the Mozzicato Bakery, Hartford, Connecticut’s Paul “Paolo” Mozzicato is both the principal of a local real estate company and a risk advisor with Smith Brothers, an insurance company. One of Paul Mozzicato’s areas of expertise is healthcare reimbursement arrangements. A healthcare reimbursement arrangement (HRA) is a group healthcare plan that reimburses policyholders tax-free for all qualifying annual medical expenses up to a predetermined amount. Employers that fund and own these HRAs may support arrangements that allow the rollover of unused dollar amounts from year to year. HRAs can cover both necessary medical care and health insurance premiums. The HRA is particularly attractive to small businesses that may not have the resources for a traditional group health plan. Although HRAs differ substantially in their specific terms, they generally follow the same basic processes. Employees purchase healthcare products and services knowing the maximum employer allowance amount for the HRA. They must submit proof of all these purchases to the employer for review and approval. Then, the employer returns all approved expenses to policyholders in the form of a monetary reimbursement.

1. HRAs Understood
Paul "Paolo" Mozzicato

2. Introduction
In addition to his work as principal and manager of the Mozzicato Bakery, Hartford, Connecticut’s
Paul “Paolo” Mozzicato is both the principal of a local real estate company and a risk advisor with
Smith Brothers, an insurance company. One of Paul Mozzicato’s areas of expertise is healthcare
reimbursement arrangements.

3. A healthcare reimbursement arrangement (HRA) is a group healthcare plan that reimburses
policyholders tax-free for all qualifying annual medical expenses up to a predetermined
amount. Employers that fund and own these HRAs may support arrangements that allow the
rollover of unused dollar amounts from year to year.

4. HRAs can cover both necessary medical care and health insurance premiums. The HRA is
particularly attractive to small businesses that may not have the resources for a traditional
group health plan.

5. Although HRAs differ substantially in their specific terms, they generally follow the same basic
processes. Employees purchase healthcare products and services knowing the maximum
employer allowance amount for the HRA. They must submit proof of all these purchases to the
employer for review and approval. Then, the employer returns all approved expenses to
policyholders in the form of a monetary reimbursement.