Advertisement

Who controls the funds in a health reimbursement account (HRA)?

Your employer controls the funds in your health reimbursement account (HRA) in a number of ways.
  • Your employer sets up your HRA.
  • Your employer determines which medical expenses can qualify for payment with HRA funds (within parameters set by the Internal Revenue Service).
  • Your employer makes contributions to your HRA and only your employer can fund your HRA.
While your employer funds and owns your HRA, you can use the money in it tax-free for paying for qualifying medical expenses, such as deductibles and coinsurance. Some HRAs include a debit card that you can use at the point of purchase to pay for medical supplies and services. Other HRAs require that you pay up front for the services or products and the fund will reimburse you for those costs.
 

Continue Learning about Health Insurance

How to Make Sense of Your Health Insurance Coverage
How to Make Sense of Your Health Insurance Coverage
It happened again—another mysterious medical bill has arrived for treatment you thought was covered under your health insurance policy. Before the fru...
Read More
What are the different ways to pay for long term care?
Sharine ForbesSharine Forbes
Until recently when President Obama signed the Health Care reform into law, there was “no political...
More Answers
What is covered under health insurance if I have diabetes?
Dr. Michael Roizen, MDDr. Michael Roizen, MD
Many insurance plans cover testing for prediabetes, and thanks to the Affordable Care Act, you may p...
More Answers
How Is Your Insurance Company Model Different?
How Is Your Insurance Company Model Different?

Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.