Health Reimbursement Arrangement (HRA)

  • A Health Reimbursement Arrangement is an account funded by your employer. (Only your employer can contribute to your HRA.) You can use the funds in this account to help pay for your healthcare on a tax-free basis. You use this money to pay for any qualified healthcare expense incurred by you or your dependents.

    There are different types of HRAs. Each type of HRA covers a different set of eligible healthcare expenses, which may include:

    • Health plan deductibles, coinsurance, or copayments
    • Vision care services
    • Dental care services
    • Hospital charges
    • Laboratory fees
    • Prescriptions
    • Certain over-the-counter items

    Please contact your Human Resources office to learn whether an HRA is offered and if so, the specific healthcare expenses it covers.

    What are the benefits of an HRA?

    • Your employer funds the HRA. You can use the money in your account to help cover part of your out-of-pocket healthcare spending.
    • You don't pay taxes on the money your employer puts into your account
    • You can withdraw money from this account, tax-free, for qualified healthcare expenses
    • The funds in your HRA are not considered income. Therefore, they are not subject to income tax, Federal Insurance Contributions Act (FICA), or worker’s compensation deductions.

    An HRA is an easy way to pay for healthcare expenses

    There are two 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 will 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

    Note: This material is not intended to be tax or legal advice. The reader should consult with his or her own tax advisor to determine the tax implications of purchasing the products discussed herein.

    Advice, if any, included in this material was not intended or written by Premera to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.