Three Things You Need to Know About an HRA

May 31, 2018

No matter what type of health plan you’re enrolled in, a Health Reimbursement Arrangement (HRA) is a great way for you to save. But, like any benefit, if you don’t know how to use it, you likely won’t be maximizing your savings to their full potential. That’s where we can help! If your employer offers an HRA plan, here are the three key things you should know about this benefit:

Learn more about an HRA

HRAs Are Fully Funded by Your Employer

An HRA is fully funded by your employer, which means you don’t need to set aside money to take advantage of the pre-tax benefit like you do with a Flexible Spending Account (FSA) or Health Savings Account (HSA). Your employer determines:

  • How much annually to put into your account 
  • What the contribution limits will be
  • Which expenses are eligible (within IRS limits)
  • Whether your funds can roll over to your next plan year

HRAs are Flexible

Depending on your eligibility, you may be able to pair your account with:

  • Any group health plan. Typically, they're offered and paired with High-Deductible Health Plans (HDHPs).
  • Other types of benefits plans, including an FSA and HSA. Eligibility depends on the specifics of your plan. For example, general-purpose HRAs typically can’t be paired with HSAs, but Limited HRAs can be.

With the Discovery Benefits debit card, you can access HRA plan funds from any of your benefit accounts using just one card. Your employer’s plan setup will determine which account funds are pulled from first when you swipe the card, so you don’t ever have to worry about it!

HRAs Make it Easy to Save

Health Reimbursement Arrangements are tax-advantaged accounts, so you won’t pay taxes on your reimbursed expenses. When you want to take advantage of the funds your employer has contributed into your HRA, consider:

  • Downloading our secure mobile app, which lets you access all your account information and file claims on the go. You can also use your phone’s camera to upload documentation when you need to show that an expense was eligible.
  • Enrolling in direct deposit through your online account, which will help speed up your reimbursement process.

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