Health Reimbursement Arrangement (HRA)

What is an HRA (Health Reimbursement Arrangement) ?

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 pharmacy 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). You choose which out-of-pocket qualified medical expenses you would like to submit for reimbursement based on the plan parameters that your employer has designed for this employer-sponsored HRA.


Frequently Asked Questions about your HRA:


1.  Do I have to have health insurance to have a 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 pharmacy expenses 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). You choose which

out-of-pocket qualified medical expenses you would like to submit for reimbursement based on the plan parameters

that your   employer has designed for your companies HRA.

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.

4.  Do I need to enroll each plan period?

Yes. All eligible employees must enroll each year during the open enrollment period. Your employer will 

instruct you on how to complete enrollment.

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

 Dependent on your employers HRA plan parameters, Dependent expenses could be covered as well.   

6.  What is an eligible health care expense?

Eligible expenses under an HRA plan are determined by your employer. Contact your human resources  

department for information about your HRA plan design and eligible expenses. Generally, the following

 expenses are eligible under an HRA plan: 

    •Health insurance deductibles

    •Coinsurance and co-pays

    •Other expenses included in IRS Publication 502—Medical and Dental Expenses as eligible or qualified expenses  

    •Eligible expenses must be incurred by the employee and/or eligible members of the employee’s family, and 

      take place within the benefit plan year.

7.  Is there a minimum claim amount?

There is no minimum claim amount; however, your plan may place a minimum on the reimbursement

account (usually $15). If your eligible claim amount is less than the minimum, it will be held until additional claims are submitted.

8.  What’s the maximum reimbursement amount from my HRA?

Your HRA benefit amount is determined by your employer. Most plans will reimburse eligible expenses up to 

the full available balance in your HRA. If your plan is based on an accrual, you'll only be reimbursed the

amount that you've earned in the plan. Contact your benefits department for specific information about your plan design. 

9.  Do funds carry over at the end of the plan period? 

Any unused amounts left in the accounts at the end of the plan period may or may not be carried over into the

next plan period depending on your plan. You have access to these funds from year to year as long as you

remain an eligible employee and carryover is permitted by your plan. You may even have access to funds after

termination of employment, if permitted by the plan.


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



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