A Health Reimbursement Arrangement (HRA) is an employer funded plan

What is it?  

  • A Health Reimbursement Arrangement (HRA) is an employer funded plan that reimburses employees for qualified medicalexpensesand in some cases, insurance premiums.  
  • HRA’s are usually paired with High Deductible Health Plans but can be paired with any type of health plan or offered alone. 

Who contributes to it? 

  • The employer always funds the HRA. The employee cannot contribute. It is employer-owned. 
  • Reimbursement dollars are generally tax-free to you. 
  • With an HRA funds cannot be withdrawn in advance, rather an expense must be incurred and reimbursed or paid for with a debit card. 

What can you use it for? 

  • You can pay for qualified medical expenses such as deductibles, co-insurance, pharmacy expenses, vision and dental services (if you have that type of plan) and much more. (See the list of qualified medical expenses above) Eligible expenses are determined by your employer though, so if you have questions about eligibility you should contact your HR department.