A Health Reimbursement Arrangement, or HRA, is a triple tax-free benefit vehicle that helps you pay for eligible medical expenses* during retirement or active employment, using funds contributed by your employer. There is no limit on how much your employer contributes to your account, the account is in your name, and the funds never expire. Best of all, the funds can be invested for potential growth, and you’ll benefit from tax-free deposits, accumulation, and reimbursement.
The beauty of an HRA is the flexibility of plan design—there is an HRA application for the various stages of an employee’s life.
Let’s explore just how that HRA works for you while you’re actively working for the employer sponsoring your HRA.
If you’re still actively working and currently have an HRA, your employer may have enrolled you in either an Integrated HRA (iHRA) or a Defined Contribution HRA (dcHRA).
You’re eligible for reimbursement while you are actively working.
- What it is: With the iHRA, your employer deposits a fixed dollar amount into your HRA to offset the cost of group medical coverage. While you must be enrolled in group health coverage, you’ll have the advantage of benefit dollars available to you while you’re working and a MidAmerica Journey Benefits Card to use for point-of-sale transactions, simplifying the claims process for you and your eligible dependents.
- How it works for you now: Since you’re eligible for reimbursement while you actively work, you can use your HRA to offset eligible health care costs for you, your spouse and any eligible dependents! To learn more about eligible expenses, how to submit claims and more, visit myMidAmerica.com/hraresources.
Defined Contribution HRA
You receive deposits into your HRA while actively working but are not eligible for reimbursement until you retire or separate from service.
- What it is: The Defined Contribution HRA operates according to the same parameters as the Integrated HRA, with your employer contributing a “defined” amount at a set frequency. However, these funds are not accessible until you retire or separate from service, continuing to accumulate year after year, along with any (tax-free!) earnings that may be generated by your funds’ underlying investments.
- How it works for you now: While you won’t be able to use your HRA funds while you’re still working, you can monitor the growth of your HRA knowing you’ll have a benefit you can count on when you leave the workplace. It’s important to note that once you become eligible for claims reimbursement, the claims submitted must be incurred after you retire or separate from service. For example, if you had a doctor’s appointment or medical procedure while you were still working, that service wouldn’t be eligible for reimbursement since it was rendered before you become claims eligible.
Not sure if you have an Integrated HRA or a Defined Contribution HRA? Review the Plan Highlights FAQ that was included with your Welcome Letter and/or Welcome Kit. You can also call (855) 329-0095 or email us at [email protected]!
* Please note your employer will determine which medical expenses are eligible for reimbursement, so be sure to review your custom Plan Highlight FAQs.