Health reimbursement account

Let's...

Now, next, let's talk about HRAs, or Health Reimbursement Arrangements.

And this is basically saying where you're creating a plan that says, "Hey, we're gonna give you money to go pay for health costs on your own.

You can go to the marketplace and get insurance, and we're gonna reimburse you for it." And if we have a properly set up HRA, health reimbursement arrangement, we can get a business deduction for the amount that we reimburse you, and it can be tax-free to you.

And like I, I think that is one of the issues with healthcare.

That said, though, if I had to like choose one thing, I do think that there's a ton that we can do from a drug pricing, bringing market dynamics into healthcare, making like the consumer, giving them more agency over what they're buying and, you know, using their own money, like a health savings account or an HRA account or whatever.

But I do think fundamentally A lot of the conversation that focuses on, on healthcare, uh, and healthcare costs and all this stuff misses the point, which is that 60 years ago, the average American was healthy.

Today, the average American is not.

Lifetime Fitness, many of these, these partner companies that we work with, and basically say, "If you are working to treat, reverse, or prevent a condition, you are quite likely going to be eligible to spend your HSA, FSA dollars on an intervention that studies show is clinically effective at driving a health outcome." And so that's kinda what we've built.

We've, like, helped direct, you know, over a billion dollars towards fitness, towards lifestyle interventions, towards sleep aids, towards supplements, towards, like, medically tailored meals, um, and feel like we're, we're just getting started.

Uh, even though as confusing as HSAs and FSAs and HRAs are today, uh, we also have a lot of tools that we're working on building at TrueMed.com that are gonna make these tools, uh, you know, much, much easier to take advantage of and use.

Okay.

But if you don't qualify for an HSA or you put the money in there and let it ride, How are you going to get a write-off for those medical expenses? Let's say you do have $200, $300, $400 a month of just extra medical expenses.

And if you have a family, that's very doable, right? So the HRA comes into play, a health reimbursement arrangement.

Now, in an S corporation, you'd say, oh, well, I'll just give myself an HRA on I work hard in the business.

I deserve to get reimbursed for my medical expenses.

It's a write-off for the business.

Sign me up.

Eh, problem.

With an HRA in an S corporation, you cannot do it for an owner that's running the S corp.

But HIPAA applies to group health plans.

So it applies to your major medical plan, dental, vision, health FSA, HRAs.

But ERISA applies more broadly.

It applies to all of those plans, but it also applies to life, short and long-term disability.

So there you go.

Both of those accounts, those health reimbursement accounts or at American, it's called the health rearrangement.

That's really a tough twister.

But anyway, both of those accounts, while you don't directly put money in, they're both very, very valuable to you.