![]() You can usually enroll only during your employer’s health insurance open enrollment period unless you have a qualifying life event and are eligible for a special enrollment period. To qualify for an HRA, you must work for an employer that offers an HRA as part of its benefits package. “Then, based on that, take advantage of the dollars your employer contributes in the time frame required to not miss out on any ‘free’ money.” Who can take advantage of an HRA? “For an HRA, it’s important to take the time to understand exactly how your employer has the HRA set up,” said Torre. Vision care, including eye exams and glasses.Payments toward your policy deductible. ![]() Your employer determines which health care expenses qualify for reimbursement from an HRA. “Rather, the limit is chosen and set by the employer offering the HRA.” Eligible expenses under an HRA “For HRAs, there is no defined contribution limit,” said Tom Torre, co-founder and CEO of Bend Financial, a Boston-based company that provides HSAs for employers and consumers. While other types of tax-advantaged health accounts limit how much can be contributed every year, HRAs are different in that regard, too. You typically have to pay for eligible medical expenses upfront and then submit them for reimbursement from your HSA, though some employers issue HRA debit cards that allow you to pay the doctor or health care provider with HRA funds on the spot. Typically, you can roll over unused HRA funds into future years, though some employers may not allow that. But unlike FSAs, which are funded at least partially by the employees, HRAs are 100% funded by your employer. An HRA doesn’t have to be paired with a high-deductible health plan, as HSAs do.Īn HRA might sound similar to a Flexible Spending Account (FSA) - another employee benefit that helps you pay for health care costs. You can withdraw money from an HRA tax-free to pay for eligible medical expenses, up to a specific amount per year. HRAs or Health Reimbursement Arrangements are a perk that some employers give to their workers as part of the company benefits package. Here’s what to know about each, and how to take advantage of them to help you save money. One valuable way to save is to take advantage of tax-advantaged options, including two that sound pretty similar: Health Reimbursement Arrangement (HRA) and Health Savings Account (HSA).īut HSAs and HRAs differ in important ways. These accounts can be used to pay for premiums, deductibles and qualifying health expenses.įrom high copayments every time you see the doctor to expensive over-the-counter drugs, health care costs can leave a major dent in your budget.Health Savings Accounts (HSA) are owned by you and funded with pre-tax contributions.Health Reimbursement Arrangements (HRA) are offered by some employers to reimburse workers for eligible medical expenses.
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