Health Reimbursement Arrangement (HRA)

HRAs offer an employer-funded sum of money that is tax-free that can be used for medical costs. These agreements are an excellent way to cover qualified medical expenses out-of-pocket while working toward meeting your plan deductible.

Is an HRA Right for You?

HRAs provide an employer-funded, tax-free allowance that employees can use to cover qualifying medical expenses. They are a great way to help employees pay for out-of-pocket healthcare costs while working toward meeting their health plan deductible.

Eligible Expenses

Since HRAs are employer-funded, the employer decides what expenses are eligible for reimbursement. For a complete list of eligible expenses, reach out to your HRA administrator.

Advantages of an HRA

Tax Savings
When used to cover qualified medical expenses, reimbursements are tax-free.

Reduced Out-of-Pocket Expenses
The provided funds will make it easier for you to pay toward your deductible as the costs won’t be coming out-of-pocket.

Accrued Balance
Depending on your employer’s plan, you may be able to roll HRA funds over from year-to-year.

Changes in Eligibility

Changes in an HRA’s eligibility may be caused by specific life events such as:

• Losing employment
• Cancelling employer-sponsored health insurance

You may receive reimbursement for any qualifying medical costs you incurred before the HRA’s termination date.