Health Reimbursement Arrangement

A health reimbursement account, or HRA, allows you to plan how much to spend on your employees' qualified expenses.

The value of an HRA

1.
Your contributions are tax deductible, which lowers your payroll taxes.
2.
Employers choose how the account works, including eligibility requirements.
3.
Reimbursements are tax free when an employee files a claim.
4.
Employees often report increased job satisfication because they have funds to help pay for medical expenses.

How an HRA works

An HRA is an employer-owned account that employees can use to pay for things like deductibles, copays, dental or vision care. As the employer, you get to decide what the funds are eligible for.

You're also the only party who can fund the account. This means you can budget and decide in advance how much to spend on your employees’ health care.

Because employers own the accounts, they get to keep any funds employees don’t use.

You can learn more about how an HRA stacks up to other account types with our Consumer-Directed Health Comparision Guide (PDF).

Types of HRA

We offer several types of HRA accounts that you can choose from.

  • Medical HRA: This allows you to choose how much you contribute to the account and what types of services can be covered. 
  • Rollover retirement reimbursement arrangement: This allows you to roll over your HRA funds each year
  • Retirement reimbursement arrangement with a one-time contribution: This allows an employer to make a one-time contribution at retirement. No future contributions are allowed. Funds don't expire.
  • Limited purpose HRA: This reimburses qualified dental and/or vision services. It must be paired with an HSA.
  • Post-deductible HRA: This reimburses qualified medical expenses after the plan deductible is met. It must also be paired with an HSA.
We can help you choose the righ option for you and your employees.

HRA-compatible plans

Want to see plan details? We offer an HRA-compatible plan for each group size.

If you have 1,000 employees or more, connect with us for a customized solution.

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