Our Health Reimbursement Arrangement (HRA) is totally funded by [ABC Company]; you cannot contribute to it.

The HRA is usually used to pay medical or prescription expenses that are applied to your deductible. When you are no longer employed here, you do not receive any remaining HRA funds.

[ABC Company] will contribute into your HRA $xxx if you are enrolled as employee only, or $xxx if you have dependents on the plan with you (as long as requirements are met).

HRA Advantages:

Funds immediately available: You can begin using the account for eligible medical and prescription expenses at the beginning of our health plan year.

Tax savings: You don't pay taxes on your HRA funds. Reimbursements from your HRSA for qualified medical expenses are tax-free.

Out-of-pocket expense reduction: You save money by paying a portion of your deductible through your HRA.

Rollover of unused funds to next plan year: HRA funds you don't use in the current plan year roll forward to the next year - up to your deductible amount. So, it benefits you to be a good healthcare consumer!

Video: 3 Reasons to Love Your HRA