What is a Health Reimbursement Arrangement (HRA)?
HRA programs are fully funded by your employer and are designed to help you pay for out-of-pocket medical expenses.
In an HRA your employer sets the amount in the account. Your employer also specifies the types of services that are eligible to use the HRA.
Generally, an HRA can be used for the following:
- Routine health care
- Hospital expenses
- Dental Care
- Vision Care
- Diagnostic products
How does an HRA work?
An HRA works by your employer contributing money into your HRA. Then, within the parameters set by the employer, you choose how these healthcare dollars are spent. Keep in mind, the money contributed by your employer to your HRA doesn’t count as income. This means there are no tax implications.
You can use the money in your HRA throughout the plan year for qualified medical expenses.
Depending on your plan design, any leftover dollars may roll over from year-to-year, as long as you continue to be a member of the plan. If you cease to be a member of your plan your leftover dollars may be forfeited.
If you have any questions about your HRA through CAS or how your HRA works, contact us!
We would love to help you!
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