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. HRAs are compatible with all types of health insurance plans and they are owned by the employer.

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.

HRA, HSA What’s the difference?

Though it seems like a bit of alphabet soup, there is a difference. An HSA, which is coupled with an HSA-eligible medical plan, is a personal savings account that you contribute to (some employers do as well). An HRA is funded by employer contributions only. Learn about the differences here.

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.

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 qualified for payment by an HRA here.