Health Reimbursement Arrangement (HRA)

  • What's a health reimbursement arrangement?

    A health reimbursement arrangement (HRA) is an employer-funded account. Your employer contributes money to your HRA tax-free. You and your dependents can use the funds to cover IRS-approved medical expenses.

    What are the benefits of an HRA?

    • Use your account to help pay out-of-pocket healthcare costs.
    • The money your employer puts into your account is tax-free.
    • You can withdraw money from this account, tax-free, for qualified healthcare expenses.
    • HRA funds aren't considered income. They are not subject to income tax, Federal Insurance Contributions Act (FICA), or worker's compensation deductions.

    Different HRA types

    The type of HRA your employer chooses will determine whether you or your account pays first. HRA types can include:

    • Member pays first: The member pays for a set amount of expenses before HRA funds are available.
    • HRA pays first: HRA funds are available for eligible expenses immediately.
    • Split first dollar coverage: Eligible healthcare expenses are split between you and your HRA.

    Please contact your employer or HR department to learn what type of HRA is being offered.

    There are 2 potential ways to use an HRA to pay for your healthcare

    1. When you pay using your own out-of-pocket funds, you can easily create your claim online. Once you submit your receipts, you'll be reimbursed by check or direct deposit.
    2. If your HRA allows, you can use the healthcare payment card to pay for eligible expenses at approved merchants and providers that accept debit cards.

    Manage your health reimbursement account.