HSA plans provide a unique way for you to lower the overall cost of your medical benefits while allowing you control over spending. These plans replace a traditional low deductible high premium plan with a higher deductible but lower premium plan. For healthy individuals, this option ultimately provides a savings on the cost of medical coverage while insuring that catastrophes are covered. Additionally, with an HSA, the money you put into the plan is tax deferred and is tax free if used for medical costs. *Our consultants are experts at finding and implementing the right plan for your needs.
*For advice relating to taxes, please consult your tax advisor.
Health Reimbursement Arrangement (HRA) FAQs
No, but HRAs are usually provided to complement a high-deductible health plan (HDHP), but can be paired with any type of health plan or used alone. Once your HRA funds are gone, you pay all new and remaining expenses out of pocket.
Your Employer. HRAs are fully owned and funded by the employer.
No. The accounts are not individually owned bank accounts and do not earn interest.
The amount contributed to your HRA is up to your employer.
It depends upon your employer, but generally the following expenses are eligible under an HRA plan:
-Health Insurance Deductibles
-Coinsurance and co-pays
-Other expenses included in IRS Publication 502
-Some insurance premiums
Eligible expenses must be incurred for the care of the employee and/or eligible members of the employee’s family and incurred within the benefit plan year.
Your employer determines whether or not you can continue to use your HRA funds for qualified expenses after you leave or retire.
Again, this is determined by your employer, as many HRA plans provide an annual benefit that is available to you in full at the beginning of the plan year. While in other plans, HRA benefits accrue from month to month.
For example, your plan may provide $1,200 for the entire plan year accrued at $100 each month. You may only be reimbursed up to the maximum amount you’ve accrued at the time of the claim and reimbursed for the balance of your claim once you’ve accrued more funds.
Employer determined. Your HRA benefit amount is determined by your employer and most plans will reimburse eligible expenses up to the full available balance in your HRA. If your plan is based on an accrual, you’ll only be reimbursed the amount that you’ve earned in the plan.
Does the money I have in my HRA roll over from year to year or do I lose the money at the end of the year?
Employer Determined. Whether or not your money rolls over to the next plan year is up to your employer.
Yes. The money in your HRA can be used to pay for eligible medical expenses of any family member who qualifies as a dependent on your tax return provided the dependent is covered by your HRA.
Yes. If your domestic partner meets the IRS qualifications of a tax dependent, you can legally use your HRA funds for his or her qualified medical expenses. If your partner doesn’t meet the tax dependent qualifications, you can’t use your HRA.
Every timeyou incur a qualified medical expense you can request reimbursement. If your plan is an accrual-type plan, you may only be reimbursed up to the maximum amount accrued at the time of the claim and reimbursed for the balance once you’ve accrued more funds.
Yes. Some plans allow up to 990 days after the end of the plan year to request reimbursements for expenses incurred during the plan year, known as the run-out period.
Typically reimbursements from HealthEquity HRAs takes five to seven days after HealthEquity receives your completed reimbursement request form and necessary documentation.
You can receive your reimbursement by check or direct deposit.
No. Funds can only be used for qualified medical expenses as determined by your employer as outline in IRS Publication 502 (Medical and Dental Expenses).
Yes. You can see your account balances, claim transactions, and more online. You can also request reimbursements and manage your personal information.