Understanding HRA

A Health Reimbursement Account (HRA) is an employer-funded benefit that reimburses employees for qualified medical expenses, providing tax-free savings on healthcare costs. Unlike Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), HRAs are solely funded by employers and cannot receive employee contributions.

To participate, employees must be enrolled in their employer's health plan. HRAs reimburse expenses like copayments, coinsurance, prescription drugs, dental and vision care, and long-term care services, up to a specified annual limit. Reimbursements are tax-free for employees and tax-deductible for employers. Unused funds may roll over, depending on the employer's policy, but typically revert to the employer if the employee leaves.

HRAs can also support retirees if allowed by the employer's plan, enhancing financial well-being and employee satisfaction. Understanding the specifics of eligible expenses and rollover rules is essential for maximizing HRA benefits, especially as healthcare costs continue to rise.

Members can connect their HSA to the HealthJoy app to view their balance.