What is a Health Reimbursement Arrangement?

Health Reimbursement Arrangements (HRA) are employer-funded plans that reimburse employees for certain out-of-pocket medical expenses. You must submit paperwork in order to receive a reimbursement.

How does it benefit me?

• You may save money on insurance premiums deducted from your pay. Typically, these plans are used in conjunction with High Deductible Health Plans (HDHP), i.e. High Deductible (higher out-of pocket) = Lower insurance premium.
• With a decrease in insurance premiums, your out-of-pocket medical expenses are likely to increase. The HRA is designed to reimburse you for the increased out-of-pocket expenses.
• Any HRA reimbursements are not taxable income to you.
• Depending on your employer’s plan, charges incurred by your covered dependents may be eligible for reimbursement.

What else do I need to know?

• Anyone enrolled in the group’s medical plan is eligible to enroll in the HRA.
• All medical deductibles and out-of-pocket coinsurance expenses accumulate on a calendar year basis regardless of when your medical plan renews.
• You will need to complete and submit an HRA claim form and required EOBs for reimbursement.
• You may submit multiple claims for reimbursement during the Plan Year, but no later than 60 days after the end of a Plan Year.