HEALTH REIMBURSEMENT ARRANGEMENT
Now more than ever, health care dollars need to go further. With an HRA they can. Through a health reimbursement arrangement (HRA), you receive tax-free money from your employer to cover medical expenses that may not be covered by insurance such as dental work, vision care, and prescriptions. That means fewer out-of-pocket health care costs for you and more money in your pocket.
WHAT IS A HEALTH REIMBURSEMENT ARRANGEMENT (HRA)?
An HRA is a program that is fully funded by your employer and is designed to help you pay for out-of-pocket medical expenses. While HRAs come in many varieties, your HRA allows you to use the funds for an array of eligible expenses.
HOW IT WORKS
Your employer puts money into your HRA and you choose how your health care dollars are spent. Because the money contributed by your employer doesn’t count as income, there are no tax implications. It’s kind of like getting a raise. You can use the money in the HRA throughout the year for qualified medical expenses. Depending on your plan design, any leftover dollars may roll over from year to year (as long as you continue to be a member of the plan) or they may be forfeited.
YOU CAN USE YOUR HRA DOLLARS AND YOU PREPAID BENEFITS CARD TO PAY FOR EXPENSES LIKE:
- Routine health care: office visits, X-rays, lab work
- Hospital expenses: room and board, surgery
- Medications: prescription and over-the-counter (OTC) drugs when prescribed by a physician
- Dental care: cleanings, fillings, crowns
- Vision care: eye exams, glasses, contacts
- Copays and coinsurance (the portions of health care bills paid by you)
- Eligible OTC items such as:
- First aid dressings and supplies –bandages, rubbing alcohol
- Contact lens solutions/supplies
- Diagnostic products like thermometers, blood pressure monitors, cholesterol testing
- Insulin and diabetic testing supplies
*Plan designs vary. Be sure to check your Summary Plan Description (SPD) for a list of eligible expenses. The list of eligible OTC items changed per the CARES Act of 2020. Contact Peak ONE for more information or click here for details.