A general HRA (health reimbursement arrangement) is an employer-funded plan that reimburses employees for qualified medical care expenses. HRAs are designed to supplement group health coverage.
How to get reimbursed
Submit claims for qualified healthcare expenses and get reimbursed up to your available balance.
Eligible expenses
You can submit for reimbursement any expense that the IRS has defined as a qualified medical expense under Section 213(d) of the Internal Revenue Code (IRC). The broad list includes the medical expenses and procedures as listed below:
Deductibles, copayments, and coinsurance
Dental treatments (e.g., fillings, extractions)
Hearing aids and exams
Lab tests and imaging
Over-the-counter medications (with a prescription)
Medical equipment and supplies (e.g., crutches, blood pressure monitors)
Mental health services (e.g., therapy, counseling)
Physical therapy and chiropractic care
Preventive care services
Prescription medications
Smoking cessation programs
Specialist visits and hospital services
Weight-loss programs (if prescribed for a specific medical condition)
Vision care (e.g., eye exams, glasses, contact lenses)
Ineligible expenses
You cannot use your general HRA for health insurance premiums (monthly payments).
Funding
HRAs must be funded by employers; employees cannot contribute to HRAs. (Thanks boss!)
Limits
Your employer designates the amount of funds made available to you.
Taxes
HRA employer contributions and employee reimbursements are not subject to federal income tax, Social Security tax, or Medicare tax.
If reimbursed for medical expenses through your general HRA, you cannot include those expenses in your medical expenses when filing your taxes.
Ownership
General HRA funds belong to your employer. If you leave your job or your employer changes the plan, you may lose access to unused funds.
Double dipping
You cannot submit a claim for the same qualifying expense to multiple tax-advantaged accounts, like an FSA and an HRA. If found to have submitted duplicate claims, your benefits administrator will ask you to pay back your FSA or HRA.