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.


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?


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?


  • 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

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. Open your HRA account and review any claims that are flagged or marked “needs documentation”
  3. Open the claim and select “upload documentation.”
  4. If you’re online, you may upload a scanned documentation file. Be sure all parts of the document are legible.
  5. If you’re on the MyChoice Mobile App, go to the account and select the pending claim. Then, 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.
  6. If you’d like to submit via fax or mail, you may get a form from the reference center of your online benefits portal 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

Are you looking for HRA plan administration?

Learn more