How the HRA Works

Health Reimbursement Arrangements are designed to help pay for certain health-related expenses and qualifying insurance premiums incurred by an employee, a former employee, their spouse or their dependents as allowed by the employer’s plan. Balances remaining in the account at the end of the plan year may or may not be carried forward into the next plan period. Because each plan is unique, employees want to make certain that they review their HRA Plan Summary to understand what is eligible under the plan. HRA plan summaries are in the participant portal. Employees log in to their accounts and go to the “tools & Support” page.  
 
Reimbursements are received by submitting claims and supporting documents through the participant portal, email, fax, or mail. Supporting documents can be a receipt, a bill, an explanation of benefits summary and/or any documents that have the provider’s name, the service date, type and amount. Additional document requirements may be indicated in the plan. After the claim is reviewed and the expense approved, payment is made by direct deposit or check. Claims are processed daily and payments are distributed at least once a week.
 
The plan may require reimbursements are issued from the Healthcare FSA first, if applicable, before HRA funds are used.
 
There is no income tax reporting required when participating in an HRA. The employer-funded contributions are free of federal, state and Social Security taxes and do not appear on W-2s as reported income.