Health Reimbursement Arrangements (HRAs): 3 things to know

3 important things to know

1. 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
     premiums

     The amount you pay for your health insurance every month. In addition to your premium, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance. If you have a Marketplace health plan, you may be able to lower your costs with a premium tax credit.

     for a health plan you buy yourself.
2. 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.
3. 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.