Benefit FAQ

Can I use the money in my HRA to pay for my children’s medical expenses, co-pays, and deductibles?

Yes. The money in your HRA can be used to pay for eligible medical expenses of any family member who qualifies as a dependent on your tax return, provided the dependent is covered by your HRA.

Does the money I have in my HRA roll over from year to year or do I lose the money at the end of the year?

Whether or not your money rolls over to the next plan year is up to your employer. Contact your human resources department for specific information about your plan design.

What happens to the money in my HRA if I leave my job or retire?

Whether or not you can continue to use your HRA funds for qualified expenses after you leave your employer or retire is up to the employer. Contact your benefits department for specific information about your plan design.

What’s the maximum reimbursement amount from my HRA?

Your HRA benefit amount is determined by your employer. Most plans will reimburse eligible expenses up to the full available balance in your HRA. If your plan is based on an accrual, you'll only be reimbursed the amount that you've earned in the plan. Contact your benefits department for specific information about your plan design.

How much can be contributed to my HRA?

The amount contributed to your HRA is up to your employer. Contact your benefits department for specific information about your plan design.

Are my HRA funds available to me any time?

Many HRA plans provide an annual benefit that is available to you in full at the beginning of the plan year. In other plans, benefits accrue from month to month. For example, your plan may provide $1,200 for the entire plan year accrued at $100 each month. You may only be reimbursed up to the maximum amount you’ve accrued at the time of the claim and reimbursed for the balance of your claim once you've accrued more funds. Contact your benefits department for information about your specific HRA fund availability.

What is an eligible health care expense?

Eligible expenses under an HRA plan are determined by your employer. Contact your human resources department for information about your HRA plan design and eligible expenses. Generally, the following expenses are eligible under an HRA plan:

Eligible expenses must be incurred by the employee and/or eligible members of the employee’s family, and take place within the benefit plan year.

Does the money in my HRA earn interest?

No. The accounts aren’t individually owned bank accounts that are eligible to earn interest.

Who can put money in my HRA?

HRAs are fully owned and funded by the employer.

Who owns the HRA?

Your employer.

Do I have to have health insurance to have a health reimbursement arrangement (HRA)?

HRAs are usually provided by employers to complement a higher-deductible health plan (HDHP), but can be paired with any type of health plan or offered alone. Once you have used your HRA funds, you pay all new and remaining expenses out of pocket. 

What is an HRA (Health Reimbursement Arrangement)?

A health reimbursement arrangement (HRA) is an employer-funded spending account that can be used to pay qualified medical expenses. The HRA is 100% funded by your employer. The terms of these arrangements can provide first dollar medical coverage until the funds are exhausted or insurance coverage kicks in. The contribution amount per employee is set by the employer, and the employer determines what the funds can be used to cover and if the dollars can be rolled over to the next year. In most cases, if the employee leaves the employer, they can't take remaining HRA funds with them. Typically, your employer provides a high-deductible health plan and establishes an HRA in your name to help pay for your eligible out-of-pocket medical expenses. You may not contribute to the funding of your HRA. If you use all of your funds and incur additional medical expenses that are your responsibility, you'll be required to pay for these additional expenses out of your own pocket. An HRA is another type of health account that provides an incentive for consumers to become actively involved in your health care spending.