Health Reimbursement Account

What is an HRA? Watch the video.

What is an HRA?

A health reimbursement account (HRA) is an employer-sponsored and employer-funded account designed to help cover certain out-of-pocket medical expenses that are not covered by your health plan. Each employer determines what type of HRA they will sponsor – some are for standard medical eligible expenses, while others might be for dental/vision expenses only, health plan premiums or wellness incentives.

Why an HRA?

Since employer contributions to an HRA do not count as income, you do not pay taxes on either the contributions or the reimbursements your employer makes for qualifying claims on your behalf. This benefit creates a significant tax savings for participants on items and services paid for by your HRA compared to paying for medical expenses with post-tax dollars.

Participation in an HRA is a great way to maximize your health care spending. HRAs often are paired with high deductible health plans (HDHPs). When they are, you are able to enjoy a lower monthly cost for your health plan AND have HRA funds available to cover your out-of-pocket costs.

Also, HRAs are highly configurable and some employers may allow you to carryover funds beyond your plan year. This feature allows you to create a safety net for a large-scale expense or medical need.

Using Your HRA

Find out how to optimize your HRA and save on everyday eligible expenses.

HRA FAQ

Do I contribute to my HRA?

No. An HRA is entirely funded by your employer. You do not make any contributions to it.

What do I spend HRA funds on?
How do I use my HRA?
Is there a “Use it or lose it” provision?
How do I know how much I have left in my account?
What if I use my HRA for an ineligible item?
What types of HRAs are there?

CLAIMS FAQ

Do I need a receipt for my spending?

Most of the time, yes. The IRS requires HRA participants to prove the expense was eligible. MyChoice Accounts will help you by requesting documentation when we can’t determine how the funds were used. Usually, an explanation of benefits or a detailed receipt will work. If you have a debit card for your HRA, we are often able to verify that your expense was eligible based on the location code or item code, and you will not need separate documentation. Always keep your receipts until you are sure the claim has cleared.

What happens if I don’t submit documentation?
I hate dealing with receipts. Is there any way around that?

DOCUMENTATION SIMPLIFIED

  • In order to comply with IRS rules, we will want to see the following information on your documentation:
    1. Person who received service
    2. Amount paid for service
    3. Service/Item
    4. Provider name and address
    5. Date of service
    6. Description of service: category and type
  1. Log in to your account online or on the MyChoice Mobile App (iOS or Android)
  2. Select the piggy bank icon for MyChoice Accounts.
  3. Locate your HRA account and select "Request Payment."
  4. Fill in the required information, including date of service, category, type, payment amount, and upload your documentation. Affirm the disclaimer and select 'Submit.'
  5. You may view your claim status on the 'Activity' tab or under each account by selecting 'View details.'

At MyChoice Accounts, we’ve made it easy to submit documentation.

If you have a smart phone, you may use the MyChoice Mobile App and take a photo of your documentation and attach it to the claim. You may also use a photo or scan an upload directly to your benefits portal online. Finally, we accept mailed or faxed copies and can add to your records.
 

  1. Log in to your account online or on the MyChoice Mobile App (iOS or Android)
  2. Select the piggy bank icon for your MyChoice Accounts and ‘view details.’
  3. Open the claim marked ‘needs documentation’ and select ‘upload documentation.’
  4. You may upload a jpeg, pdf, png or tif file. Be sure all parts of the document are legible and all items from the documentation checklist are on the file.
  5. On the MyChoice Mobile App, if you need to attach a photo, give consent for the app to use your phone’s camera and snap a picture of the documentation, making sure all information is legible or select the file or photo from your library.
  6. If you’d like to submit via fax or mail, you may download the form that aligns with your HRA type here and send it to the address or fax number noted with the accompanying claim information, so it can be associated with your claim.

Employers and Brokers

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