Health Reimbursement Arrangement (HRA)

The HRA is an employer-sponsored plan that can be used to reimburse a portion of you and your eligible family member’s out-of-pocket medical expenses, such as Deductibles, Coinsurance, and possible Copay expenses. It is not an insurance program, but a financial reimbursement plan funded entirely by your employer. Your employer has designated a specific dollar amount to credit to the account (either monthly or annual contributions). Employees file claims for the qualified medical expenses they would like to submit for reimbursement based on the plan parameters that your employer has designed.

Some frequently asked questions about HRA's: 

1.  Do I have to have health insurance to have a health reimbursement arrangement (HRA)?

• Yes, generally HRA's are tied to the group sponsored health plan. However, there are some exceptions to this depending on the type of HRA plan you are enrolled in. 

2.  Who can put money in my HRA?

• HRAs are fully owned and funded by the employer.

3.  How do I know how much is contributed to my HRA each plan year?

• At the beginning of each plan year, your employer will notify you of the amount they will contribute to your HRA for that plan year along with your HRA plan parameters of eligible expenses, etc. .

5.  Can I be reimbursed for my dependents’ medical expenses?

• Depending on your Employer's HRA plan parameters, Dependent expenses could be covered as well.   

6.  What is an eligible HRA expense?

• Eligible expenses under an HRA plan are determined by your employer. Contact your Human Resources  department or Keystone for a copy of your HRA plan design. 

Generally speaking, the following expenses are examples of eligible expenses we see in common HRA plan designs : 

    • Health Insurance Deductibles

    • Copays and Coinsurance (the portions of health care bills paid by you) 

    • In-Network health expenses

    • Hospital expenses: room and board, surgery 

**Check with your Human Resources department or Keystone for more information about your plan design.**