Health Reimbursement Arrangements

Help with Out-of-Pocket Costs, Funded by Your Employer

Imagine taking your dog for a walk when it suddenly turns into a mad dash after Rusty chases a squirrel. You slip and sprain your ankle, leading to unexpected healthcare costs.

Wouldn't it be nice to have a little help? One tool to help you manage healthcare costs is a Health Reimbursement Arrangement (HRA). It's a reimbursement account that your employer funds and it can offset out-of-pocket expenses like deductibles, copays, and prescriptions. Your employer may fund your account on a schedule or as needed throughout your plan year.

 

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.

Retiree HRA

Covers all eligible out-of-pocket medical expenses and/or reimburses eligible insurance premiums for retirees.

Deductible HRA

Covers only items that apply to your health plan deductible.

Limited Purpose HRA

Works in conjunction with a qualified High Deductible Health Plan and Health Savings Account to reimburse eligible dental and vision expenses.

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. 

Reimbursed for Healthcare

Used to reimburse healthcare services like doctor’s office visits, hospital services, and prescription drugs. 

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.

Multiple Filing Options

Pay for eligible expenses with a Benefits Debit Card (depending on your employer's plan design), snap and submit a picture of receipts with AFmobile® or upload documentation via your online account.

Connect with your American Fidelity account manager to learn more about HRAs!

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