A quick take on Health Reimbursement Arrangements

A Health Reimbursement Arrangement (H R A) is an employer-funded account that helps employees pay for qualified medical expenses not covered by their health plans. H R A>s are compatible with all types of health insurance plans and they are owned by the employer.

How does an H R A work?

Your employer sets aside a fixed amount of money to your H R A each year for you to use. Unlike other health spending accounts, only your employer can put money into your H R A. 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.

H R A, 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 H R A is funded by employer contributions only. Learn about the differences here.

It works together with other health accounts

An H R A 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 H R A are used for any qualifying medical expenses.

Pay for out-of-pocket expenses

You can use an H R A to reimburse yourself for many common health care expenses, including over the counter items. Check out what expenses are qualified for payment by an H R A here.