A health reimbursement arrangement (HRA) is an employer-owned health benefit that reimburses you for qualified healthcare expenses with tax-free dollars.
Standard HRAs can cover common medical expenses such as deductibles, coinsurance, copays, prescriptions, dental and vision expenses.
Eligibility
It's simple! Your employer has to offer the plan, and you must have health coverage.
Tax benefits
Both employer contributions and employee reimbursements are not subject to federal income tax, Social Security tax, or Medicare tax.
If you happen to be covered by a policy providing minimum essential coverage (MEC), such as a plan purchased on the state or federal marketplaces, your HRA funds are also free of income taxes.
Limits
Your employer designates the amount of funds made available to you. Employees are not able to make contributions toward their HRA. See below for the maximum amount that employers may contribute by tax year.
| Total Maximum Employer Contribution |
2024 | $2,100 |
Eligible expenses
An HRA can be used for many eligible expenses. There might be HRA type-specific exceptions, or an employer may determine a specific Qualified Medical Expense (QME) list based on the HRA type.
Always refer to your plan document to understand your HRA's eligible expenses
Important Note
This list can be a helpful resource for understanding eligible expenses. However, due to the customizable nature of HRA plans, not all items and services suggested may be eligible. To prevent a claim denial, we recommend reviewing your summary plan documents before submitting a reimbursement claim.
Ineligible expenses
In general, expenses for cosmetic, personal care, or general health purposes are not eligible. Please review your summary plan documents to verify if your item qualifies for reimbursement.
Double dipping
A prohibited form of double dipping is submitting a claim through your HRA and FSA for the same qualifying expense.
If your benefits administrator determines you double dipped, they will ask you to pay back your FSA or HRA.