Understanding Health Reimbursement Accounts(HRAs)

Also known as a Health Reimbursement Account (HRA), this employer-funded benefit is designed to help offset the cost of out-of-pocket medical expenses. HRAs provide a flexible and tax-advantaged way for employees to manage healthcare costs with financial support from their employer.

What Is an HRA?

An HRA is a benefit account funded entirely by your employer. It is used to reimburse eligible healthcare expenses, such as medical, dental, and vision costs, depending on your plan.

How HRAs Compare to HSAs

HRAs are often paired with high-deductible health plans (HDHPs), similar to Health Savings Accounts (HSAs). However, the key distinction lies in who funds the account:

• HRA: Funded by the employer
• HSA: Funded by the employee (and sometimes employer contributions)

This difference impacts ownership, portability, and how funds are managed.

Key Benefits of an HRA

• Employer-Funded
  Your employer contributes funds on your behalf—no employee contributions required.

• Tax Advantages
  Reimbursements for qualified medical expenses are typically tax-free.

• Year-to-Year Rollover
  Unused funds may roll over into the next plan year, depending on your employer’s plan design.

How You Can Use HRA Funds

HRA funds can be used for a variety of qualified medical expenses, including:

• Doctor visits
• Prescription medications
• Preventive care services
• Other eligible healthcare expenses

 A Valuable Healthcare Benefit

An HRA provides financial support and flexibility, helping you manage healthcare expenses more effectively while taking advantage of tax-free reimbursements.