Health Reimbursement Arrangement (HRA)
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.