Health Reimbursement Arrangements:
Help with Out-of-Pocket Costs, Funded by Your Employer
Imagine you’re taking the dog for a walk that turns into a mad dash when Rusty takes off after a squirrel. One slip in a camouflaged divot in the park and suddenly you’re on the ground with a sprained ankle. Your doctor tells you it’s more of an inconvenience than a disability but you’re still stuck paying for the office visit and pain medications.
Wouldn’t it be nice to have a little help? One tool to help you manage healthcare costs is a Health Reimbursement Arrangement, or HRA. It’s a reimbursement account that's completely funded by your employer and can help offset certain out-of-pocket healthcare expenses like medical deductibles, copays, prescriptions, and more. Your employer may reimburse your account on a schedule or as-needed throughout your plan year.
Contact your American Fidelity account manager for more details about the HRA offered by your employer.
Features
Employer Funded
Set up and funded only by the employer. The HRA does not fall under a Section 125 Plan, but contributions are not subject to withholding or employment tax.
Reimbursement
Used to reimburse healthcare services like doctor’s office visits, hospital services, and prescription drugs.
Multiple Filing Options
Pay for eligible expenses with a Benefits Debit Card (depending on the employer's plan design), snap a picture of receipts with AFmobile®, or upload documentation via your online account. The choice is in your hands.
Direct Deposit Available
Get your money faster by opting to have your reimbursements deposited directly into your bank account instead of waiting for a paper check.
Types of HRAs
There are multiple kinds of Health Reimbursement Arrangements. Your employer may offer one of the following:
- Comprehensive HRA: Covers all eligible out-of-pocket medical expenses.
- Deductible HRA: Covers only items that apply to your health plan deductible.
- Retiree HRA: Covers all eligible out-of-pocket medical expenses and/or reimburses eligible insurance premiums for retirees.
- Limited Expense HRA: Works in conjunction with a qualified High Deductible Health Plan and Health Savings Account.