What is Aetna HRA?

Asked by: Mr. Golden Kutch  |  Last update: February 11, 2022
Score: 4.4/5 (7 votes)

An Aetna HealthFund® Health Reimbursement Arrangement (HRA)* gives you access to quality care. And it helps you stretch your health care dollars. Our HRA combines an Aetna health insurance or benefits plan with a fund paid for by your employer. This fund helps you pay eligible out-of-pocket health care costs.

What is a HRA insurance plan?

Health Reimbursement Arrangements (HRAs) are employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year.

What is the difference between a HRA and HSA?

The money in an HRA is provided solely by the employer. HRAs are usually unfunded notional accounts, with no cash value. An HSA is a tax-advantaged account that can be used to pay for IRS-defined health care expenses, including long-term care and COBRA premiums.

What is a PPO with HRA?

What is an HRA? ... HRAs are most often paired with PPO plans that have a high deductible, allowing you to pay for part of the deductible on behalf of your employees. In addition, at your discretion, money left over at the end of each year can be rolled over to the next year.

Are HRA worth it?

A Health Reimbursement Arrangement (HRA), can be one of the most effective ways to save money on your group health insurance premiums. In fact, some companies can save upwards of 30% over traditional plan setups.

Health Reimbursement Account (HRA)

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Is there a downside to HRA?

One con for employees is that because HRAs are employer-funded, the employer owns the money in the account though it is there for the individual to use. If the person leaves the company or the job is terminated, the HRA money stays behind with the employer.

Does HRA cover copay?

A health reimbursement arrangement, or HRA, is funded by your employer to help cover certain medical expenses. Your HRA won't cover copays for your office visits, or dental, vision, pharmacy or hearing services.

What can I spend my HRA on?

HRAs can be used to pay for qualified medical expenses, which include prescription medications, insulin, an annual physical exam, crutches, birth control pills, meals paid for while receiving treatment at a medical facility, care from a psychologist or psychiatrist, substance abuse treatment, transportation costs ...

Is HRA use it or lose it?

An HRA is a type of healthcare account, funded entirely by your employer; employees cannot contribute to an HRA. ... Per IRS guidelines, all medical expenses paid for with HRA funds must be substantiated. In general, HRAs have no "use-it-or-lose it" policy.

Can I withdraw money from my HRA account?

You can't cash out your HRA.

Unused HRA funds are either rolled over to be available for eligible expenses the following year or retained by your employer — and your employer can decide which of these options to allow. But you can never choose to withdrawal HRA money for unapproved use.

Can you have both HRA and HSA?

Healthcare spending accounts, such as Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs), help individuals and families pay for medical expenses. ... The answer is yes, you can have an HRA and HSA at the same time, under specific circumstances.

Can I transfer money from HRA to HSA?

You can't roll over unused HRA balances into your HSA. Your employer can offer a program that allows you to retain HRA balances but restrict when you can access those funds. Retirement HRA: You can't access balances until you leave the company and meet criteria set by your employer.

Why would an employer offer an HRA?

Health reimbursement arrangements (HRAs) are benefits that some employers offer their employees to help with healthcare expenses. They're a way for companies to reimburse workers for these costs, and reimbursements are generally tax-free when used for qualified medical expenses.

Who should get an HRA?

Generally, employers of any size can offer an individual coverage HRA, as long as they have one employee who isn't a self-employed owner or the spouse of a self-employed owner. HRAs are only for employees, not self-employed individuals.

What is small employer HRA?

A qualified small employer health reimbursement arrangement (QSEHRA), also known as a small business HRA, is a health coverage subsidy plan designed for employees of businesses with fewer than 50 full-time employees. Any money reimbursed is tax-free for employees and tax-deductible by employers.

What happens to unused HRA funds after death?

Amounts remaining in the account at death can be used to reimburse qualified medical expenses for the spouse or dependents of the deceased employee/retiree. The terms of the Plan would dictate how this continued coverage will be provided.

Is HRA tax free?

For most employees, House Rent Allowance (HRA) is a part of their salary structure. Although it's a part of your salary, HRA, unlike basic salary, is not fully taxable. Subject to certain conditions, a part of HRA is exempted under Section 10 (13A) of the Income-tax Act, 1961. ... This helps an employee to save tax.

What happens to money left in HRA?

Unused HRA money stays with the company. HRA money can be used to pay for family medical expenses.

Can I buy groceries with my HSA card?

Yes! You can use your Health Savings Account (HSA) or Flexible Spending Account (FSA) to purchase any Ready, Set, Food!

Where can I use my HRA debit card?

You can also use the HRA debit card for your plan's approved expenses, such as office visits, hospital deductibles and other services that may be eligible under your HRA. It's important to remember that the payment must be for eligible products or services that are reimbursable under your plan.

Can I buy tampons with HRA?

Tampons are eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), and a health reimbursement arrangement (HRA). Tampons are not eligible with a limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).

Can I use my HRA for dental?

You can use the funds in your HRA to pay for eligible medical expenses, as determined by the IRS and your employer. ... Some employers may also let you use funds in the account to pay for dental, vision or other services. Some of the more common expenses that HRAs can help pay for include: Monthly premium payments.

Who funds HRA?

Unlike an health savings account (HSA), the employer owns the HRA. And unlike group plans, employees own the health plan. The employer maintains funding and control over the arrangement, and if employees never make claims or don't use the full amount, the employer keeps the money!

Can HRA funds be used for previous year expenses?

When can HRA funds be used? HRA funds can be used for eligible medical expenses as long as the expenses were incurred by those covered by the HRA (as determined by your employer) and covered under your health plan during the period of HRA eligibility.

Can you have both an HRA and FSA?

While an employee can have both an HRA and an FSA at the same time, the same expense cannot be reimbursed from both accounts. The IRS states that special coordination rules should be implemented to determine whether the HRA or FSA should be used first.