A quick take on Health Reimbursement Arrangements

A Health Reimbursement Arrangement (HRA) is an employer-funded account that helps employees pay for qualified medical expenses not covered by their health plans.

How does an HRA work?

Your employer sets aside a fixed amount of money to your HRA each year for you to use. Unlike other health spending accounts, only your employer can put money into your HRA. The money is available to you at the beginning of the year. And, based on your employer’s individual plan, funds may roll over each year.

How is it funded?

An HRA is funded by employer contributions only.

It works together with other health accounts

An HRA can be paired with a Healthcare Flexible Spending Account (FSA). Qualified expenses are automatically paid from the FSA first, up to the available balance. Then, funds from the HRA are used for any qualifying medical expenses. Learn about how health and benefit accounts compare.

Pay for out-of-pocket expenses

You can use an HRA to reimburse yourself for many common health care expenses, including over the counter items. Check out what expenses are covered by an HRA.