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ALL ABOUT HRAs
HRAs offer savings and money back
Earn tax deductions on an account you own
Employers fund and own HRAs, so you decide how much to contribute. You can deduct reimbursed employee health care expenses as business expenses and exclude them from your employees’ gross income.
Reimburse employees with tax-free dollars
Employees can get money back, tax-free, for out-of-pocket eligible health care expenses, up to a fixed dollar amount each year. Employers fund the account, but it doesn’t count as taxable income. That means employees use tax-free dollars to pay for certain health care expenses. And unused funds can roll over to the next year.
Make it easy with the PayFlex Card®
Want to provide extra convenience? Offer the PayFlex Card to your employees. It provides instant access to their funds for eligible expenses at qualified merchants.
COMMON ELIGIBLE HEALTH CARE EXPENSES
Tax-free spending on eligible health care expenses
Check out the list of common eligible health care expenses. Use the search bar to find specific items and services. Or you can click on the column headers in the table to see which are eligible, eligible with a Letter of Medical Necessity (LOMN), or not eligible.
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TYPES OF HRAs
Understanding HRAs
Standard and limited HRAs
A standard HRA reimburses employees for eligible health care expenses. A limited HRA provides reimbursement for certain health care expenses before employees meet their deductible. Afterward, the limited HRA turns into a standard HRA.
Individual Coverage HRAs
An ICHRA is for employees who have individual health insurance coverage or Medicare. It can help them pay for eligible health insurance premiums and eligible medical expenses.
Retiree Reimbursement Accounts (RRAs)
RRAs are a special type of HRA. They provide reimbursement for eligible expenses during retirement.
EDUCATIONAL MATERIALS
Expand your knowledge of HRAs
Learn about health reimbursement arrangements