What is a Healthcare Reimbursement Arrangement (HRA)?
(Back to top) An HRA is a type of healthcare account, not an insurance plan, which is funded entirely by your employer; employees cannot contribute to an HRA. It is designed to reimburse an employee for eligible medical expenses as defined under IRS Code 213(d). Examples of eligible expenses include medical, dental and vision deductibles, insurance premiums, copayments and coinsurance as well as pharmacy expenses and some over-the-counter medicines incurred by the employee, his or her spouse and/or dependents, though your plan may limit which expenses are eligible. Per IRS guidelines, all medical expenses paid for with HRA funds must be substantiated. An HRA functions similarly to an FSA; however, only an employer can contribute funds into the account on the employee’s behalf. In general, HRAs have no “use-it-or-lose it” policy. The employer can specify at the beginning of the year whether funds remaining in a participant’s HRA are either forfeited to the employer at the end of the Con
Related Questions
- Can a Health Reimbursement Arrangement (HRA) or Flexible Spending Account (FSA) also be offered along with a Health Savings Account?
- Can I roll over my Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) account balance to an HSA?
- What is a Healthcare Reimbursement Arrangement (HRA)?
