Health Reimbursement Arrangement (HRA)

A Little Extra Help from Your Employer

A Health Reimbursement Arrangement (HRA) is an employer-funded program that helps you pay for out-of-pocket costs like medical deductibles, copays, coinsurance, and other qualified medical expenses.

Keep Out-Of-Pocket Costs Under Control

Employers offer HRAs with their health insurance plans to help offset out-of-pocket health costs. The specific costs that you’re responsible for depend on your plan.

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 HRAs automatically pay your providers directly. If an HRA is offered with your plan, your employer agrees to fund a pre-determined amount of money per year to help pay for some of these expenses.

Check with your employer for details about your HRA.

Ask your employer if your health plan comes with an HRA

An HRA is a simple, smart way to save money on your out-of-pocket costs for care. It’s like getting extra money from your employer — money that you can use to pay for copays, deductibles, coinsurance, and more.