Health reimbursement accounts are an often overlooked fringe benefit option. Effective 2012, Delaware participants may use their HRA to pay medical insurance premiums as well as for out of pocket medical costs. These plans are especially helpfully for employers who wish to offer some type of medical benefits but can't risk being at the mercy of unknown, rising insurance costs.
Typically as an employer you would offer a lump sum of HRA monies - for example $2000 - per employee per year. Employees will submit a vague list of eligible expenses for reimbursement up to the annual limit. The employee is responsible for maintaining evidence of expenses and any repercussions for illegitimate reimbursements would be faced by the employee.
A 3rd party service such as BASE can be retained to assist with annual reporting requirements for a nominal annual fee.
Here is a link to generally allowable expenses: