How To Set Up A Health Reimbursement Arrangement

Health Reimbursement Arrangements: How an HRA Works Alicia Primary 2021-07-01T12:14:11-04:00

What is a Wellness Reimbursement Organisation?

Health Reimbursement Arrangements (HRA) are a tax-advantaged business relationship funded past your employer to cover your health care costs. The money contributed to this health reimbursement arrangements are non taxed, and you can access these funds to pay for any qualified medical expense for you or your dependents.

Only your employer can contribute to health reimbursement arrangements; no employee contributions are allowed.

Paying for health care is both easier and less expensive with an HRA plan from Optum Financial.

Optum Fiscal HRAs have many benefits, including:

Flexibility. There are hundreds of eligible expenses for your HRA funds, including prescriptions, some over-the-counter medications, md function copays, wellness insurance deductibles and coinsurance. HRA funds may even be used for eligible expenses for your spouse or federal tax dependents. Run across the listing of Eligible Expenses for more details.
Easy to access. Funds in the account are easily accessed with the payment card. Your account balance is available at whatever fourth dimension online, through the mobile app, or over the phone.
Rapid reimbursements. Paying for health care expenses is piece of cake when you use your payment card. If you do not use your card, you tin can quickly and easily create your claim online. Once you submit your receipts, nosotros will reimburse you via check or straight deposit.
Out-of-pocket costs are covered. You are responsible for any portion of your health care that is non covered by your medical, dental or vision plans, including the deductible, copays, coinsurance and other un-reimbursed amounts. The HRA can be used to cover these costs.
Tax advantages. Contributions are not taxable to you, and distributions are not taxable as long equally they are spent on eligible health care expenses.

Health Reimbursement Arrangements Questions Answered

What can I use my HRA funds for?

There are hundreds of eligible expenses for taxation-free purchase with your account funds, including prescriptions, doctor's office copays, health insurance deductibles, and coinsurance. Many over-the-counter (OTC) treatments are too eligible, though go on in mind that many require a prescription, letter of medical necessity, or doctor'southward directive.*

View the HRA eligible expenses listing

Where can I shop with my HRA funds?

You can use your HRA carte at approved merchants. Your card has been programmed to work only at merchant locations that are designated as health care merchants based on their Merchant Category Lawmaking (MCC).

Examples of qualified merchants include dr.'s offices and hospitals. The menu should but be used to pay for eligible medical expenses, and y'all should ever salvage your receipts.

Yous will not be able to use your payment menu at locations that are not approved health intendance merchants. For qualified purchases at locations that are non approved health care merchants, you can pay with other means, then submit a request for reimbursement through your online account.

Visit the CYC Marketplace folio to learn more than about canonical merchants.

Do I need to go on my receipts when I utilise my HRA payment menu?

Yep! The IRS requires that all HRA purchases be verified as eligible expenses. Sometimes purchases are automatically verified when you apply your card. Other times you will demand to provide an itemized receipt or other supporting documentation to comply with IRS guidelines. Therefore, always concur on to your receipts in case further documentation is requested.

Receipts must contain the appointment of service, name and address of service provider/merchant, description of the service or expense provided, corporeality charged, and name of person receiving intendance or service.

Not-itemized cash register tapes, credit card receipts, and cancelled checks alone unfortunately do not provide proper substantiation.

This guide does non constitute tax advice. For more aid, please contact your taxation advisor. You can also discover more information in IRS Publication 969 at https://world wide web.irs.gov/pub/irs-pdf/p969.pdf. Delight go along in heed that your country might have different tax rules. Always refer to your state's taxation guidance regarding HRA tax.

Using Your Heath Reimbursement Organization

Nosotros brand information technology easy to access and apply your health reimbursement arrangement funds. In that location are 2 ways to pay for health intendance.

Use Your Payment Menu

Provide your card to a qualified merchant or provider, and they will swipe your carte du jour like whatsoever other credit or debit card to pay for your buy.

Self Pay and Get Reimbursed

Pay using your own personal credit card, cash, or check and keep your itemized receipt as documentation. Then, log on to your online account to file for reimbursement and upload documentation. Yous tin receive reimbursement funds via check or direct deposit.

Tip: Set up directly deposit online to receive quicker reimbursements.

Learn More About the CYC Payment Card

Happy Employee ConnectYourCare Payment Card

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FAQs

Become Answers

There's a lot to know nearly HRAs, which is why we've put together these FAQs

Eligible Expenses

Detect HRA-Eligible Items

Check out the eligible expenses list to see how yous can salve with an HRA

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