Can An Employer Reimburse An Employee For Health Insurance? 
That depends , an employer can absolutely reimburse their employees for qualified medical expenses but only if they do so in a way that provides an equitable enrichment for all eligible employees . The most common and simple way that a business can structure such a benefit is with a Health Reimbursement Account . The HRA is a way in which a business can raise deductibles and lower the premiums and then reimburse employees for qualified medical expenses as they go . The HRA is a notational account so it does not require the business to set aside funds in a specific account . The major benefit for business would be the opportunity to offer a far more comprehensive benefit plan at a lower cost . The lower cost is first delivered through the substancially lower premiums and then sustained due to the majority of employees medical requirements on average not coming close to maxing out their deductibles , so even though they may make a dent in their deductibles and some employees will satisfy their entire deductibles it will not offset the savings realized on their premiums . The one key is that such a plan is available to all eligible employees and does not discriminate against any group of employees especially the high payed employees . 