Health Reimbursement Accounts (HRAs) are plans that reimburse employees for incurred medical expenses that are not covered under your standard insurance plan. Because you fund the plan, distributions are tax deductible to you as the employer and dollars received by the employee are also tax free.
Alternately, Flexible Spending Accounts (FSAs) allow your employees to contribute a portion of their regular earnings to pay for qualified expenses, such as medical or dependent care. Since these funds are deducted from the employee's earnings before they are subject to payroll taxes, they can significantly lower the employee's overall annual tax burden.
Given the ever rising cost of health care, your employees will consider HRAs and FSAs a valuable addition to their overall benefit package.