A Health Reimbursement Account (HRA) is an employer-funded, tax-advantaged account that reimburses employees for qualified medical expenses and, in some cases, health insurance premiums. Unlike Health Savings Accounts (HSAs), HRAs are solely funded and owned by the employer, and employees cannot contribute their own money. HRAs help employees cover out-of-pocket healthcare costs such as deductibles, copayments, prescriptions, and certain other medical expenses. The unused funds may roll over year to year depending on the employer’s plan design.
Simplify credential management
Tracking employee certifications and licenses doesn't have to be complicated. Expiration Reminder helps you send automated notification and keep your company compliant.
Key Facts
- Employer-Funded: Only the employer contributes to the HRA; employees cannot add funds.
- Tax Advantages: Reimbursements for qualified medical expenses are tax-free for employees.
- Flexibility: Employers can design HRAs with various rules on rollover, eligible expenses, and integration with other plans.
- Qualified Expenses: Typically include deductibles, copays, prescriptions, and sometimes insurance premiums.
- Not Portable: HRAs usually stay with the employer and do not follow the employee if they leave.
1. What is a Health Reimbursement Account (HRA)?
An HRA is an employer-funded account that reimburses employees tax-free for eligible healthcare expenses.
2. Can employees contribute to an HRA?
No, only employers fund HRAs; employees cannot make contributions.
3. What expenses can I pay for with an HRA?
Qualified expenses often include deductibles, copays, prescriptions, and sometimes health insurance premiums.
4. Do unused HRA funds roll over?
It depends on the employer’s plan design; some allow rollover of unused funds, others do not.
5. Can I keep my HRA if I leave my job?
Usually not; HRAs are owned by the employer and typically do not transfer if you change jobs.
Make sure your company is compliant
Say goodbye to outdated spreadsheets and hello to centralized credential management. Avoid fines and late penalties by managing your employee certifications with Expiration Reminder.
.png)
