Health Reimbursement Arrangements (HRAs): 3 things to know
Health Reimbursement Arrangements (HRAs) are account-based health plans that employers can offer to their employees. They reimburse employees for their medical expenses. Your employer may offer you either an
or a
3 important things to know
- An HRA isn’t traditional health coverage through a job
- It’s an employer-funded group health plan that your employer contributes a certain amount to.
- You use the money to pay for qualifying medical expenses up to a fixed dollar amount per year. Unused funds may carry over from year to year.
- For some types of HRA, you can use the money to pay monthly for a health plan you buy yourself.
- You must have health coverage to use the HRA
- For certain types of HRAs, you and any eligible household members must enroll in a health plan (like through the Marketplace) to use the HRA money.
- Understand your options before you act
- Use the decision guide below to avoid paying more for coverage and using more tax credits than you qualify for so that you owe money when you file your taxes.
Get next steps for your HRA letter
If your employer offers you an HRA, they’ll send you an
. You’ll need it, and your annual household income estimate to continue through this decision guide.