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What Is an HRA Insurance Balance?

Many companies offer their employees a high-deductible health plan, since these plans typically have much lower costs for both worker and employers. Companies that offer these high deductible plans often make them more attractive by combining them with health reimbursement accounts, or HSAs, which the company funds at a defined amount.

  1. High-Deductible Health Plan

    • Before you can have a health reimbursement account, you must first have a high-deductible health plan (HDHP) in place. When you receive your open enrollment documents near the end of each year, you can review the terms of the HDHP and decide whether employer-funded HRA makes the HDHP is the right choice for you. HDHPs typically have much lower premiums than traditional plans, so signing up for that plan could save you a lot of money on premiums.

    Employer-Funded

    • The money in your health reimbursement account comes from your employer. Employers often use HRA funds to entice employees into taking a lower-cost, higher-deductible health plan that saves money. The amount in the HRA varies from company to company, but the employer generally provides more funding for family plans than for individual ones.

    Health Care Expenses

    • When you go to the doctor, the co-payment for your insurance is automatically paid out of your HRA. The same is true of prescription medications and other health-care expenses. You may also be able to get reimbursement from your HRA when you buy prescription eyeglasses, contact lenses and other health-related items. You will typically need to submit a claim form to the HRA plan for reimbursement.

    Rollover Funds

    • If you have money left in your HRA insurance plan at the end of the year, you can generally keep that money in place if long as you sign up for a high-deductible health plan the following year. If you choose another type of plan, the money remaining in your HRA is forfeited. Your HRA funds are also forfeited if you leave your employer. You cannot take that money with you or have it paid out to you like you can with your vacation time.

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