Frequently Asked Questions
What is a Health Reimbursement Arrangement also known as an HRA?
An HRA is a health care account that only employers fund. The funds contained in these plans are used to pay for eligible health care expense with the employer determining at the onset of the plan what is eligible. Some additional options for employers may offer would be Limited HRA’s or Retiree Reimbursement RRA’s.
What is a Retiree Reimbursement Arrangement also known as an RRA?
An RRA is an employer-funded account designed to help you pay for certain eligible medical expenses during retirement. Your employer may fund it while you’re working or not until you retire. You can use the funds to pay for eligible expenses after you retire.
What is a Limited Health Reimbursement Arrangement also known as a LHRA?
A Limited HRA is an account funded only by your employer who determines what is eligible, and offered in conjunction with a Health Savings Account or HSA. Limited HRA funds may be used to pay for your eligible health care expenses.
What are the two phases involved with a Limited Health Reimbursement Arrangement?
Phase 1 is Pre Deductible. Before your health plan deductible is satisfied you may use your Limited HRA to pay for eligible dental and vision expenses.
Phase 2 is Post Deductible- When your health deductible is satisfied, the Limited HRA becomes a standard HRA allowing you to use the funds to pay for all eligible health care expenses.
Can anyone contribute to my HRA?
No, only your employer is allowed to contribute to an HRA plan.
Are the funds in my HRA taxable?
No, these funds are provided to you tax free.
What can I pay for with my HRA?
Each plan is different as the eligible expenses are determined by the employer. For the best accuracy, check your specific plan for details.
I have an HRA and a health care FSA. Which account will be used first when I have an eligible expense?
Usually approved expenses will be paid initially from a health care FSA. Once the funds in the FSA account have been depleted, the HRA will then move to pay the remaining eligible expenses.
What happens to the HRA funds if they are unused at the end of the calendar year?
It depends on how each employer structures their plans but generally speaking, funds remaining in an HRA will roll over to the next plan year as long as you are considered to be an active employee.
How may I use my HRA funds?
Once funds are in your HRA, you may use your TAKE CARE card to pay for eligible expense, use our mobile app to submit a claim or pay for the expense yourself and submit a claim by mail for reimbursement.