Skip to content

Health Reimbursement Arrangement

Women watching her phone

An Employer-Funded Way to Pay for Medical Expenses

Managing health care finances can be challenging. Help is here with a Health Reimbursement Arrangement (HRA). An HRA is a medical reimbursement program that is funded for by your employer to help pay for out-of-pocket costs such as medical deductibles, copays, coinsurance and other qualified medical expenses.

HRA Advantages

Employers offer an HRA along with your health insurance plan to help offset your medical out-of-pocket financial responsibilities. Your health insurance plan may require you to pay out of your own pocket in the form of copays and/or a deductible before your insurance plan starts to pay.


HRA advantages:

  • 100% of funds come from your employer
  • No income tax on contributions
  • Typically designed to reduce your out-of-pocket expenses on qualified medical expenses

How HRAs Work

When you receive medical services, the doctor or medical facility will send a claim to your health insurer. Sometimes, your insurance will only pay for a portion of these expenses – leaving you responsible for the rest.

HRAs are a convenient way to cover the rest of these expenses and most automatically pay your providers directly! When you enroll in an HRA, your employer agrees to fund a pre-determined amount of money per year for use on some of these expenses.

Check with your employer for details about your HRA.

Men holding a coin

Ask your employer about starting an HRA today. 

Easily manage your health care expenses with an HRA.  An HRA is a simple, smart way to save money on your out-of-pocket costs for care.

If your employer offers an HRA, you should take advantage of it – it’s like bonus salary. HRAs are a great way to pay for high copays, deductibles, coinsurance and more.


Disclaimer: Not all states follow federal tax rules with respect to contributions made to HSAs. Please consult your tax advisor to determine the extent to which these contributions may be subject to state income tax and wage withholding rules.