Daniel Stewart

What Medical Expenses Can an HRA Cover?

A health reimbursement arrangement (HRA) is an amazing benefit that many employers offer. HRAs help to supplement out-of-pocket healthcare costs. They're not the same as traditional group benefits packages. However, many organizations offer them on top of more traditional insurance plans. Maximize Employee Benefits with an Integrated HRA - Explore Your Options on this Website Now!

With an HRA, your employer contributes a specific amount of money that you can use for tax-free reimbursements. Think of it as a health spending account. But what types of expenses will an HRA cover?

Whether you have a standalone or integrated HRA, your employer determines what's eligible for reimbursement. The eligible items come from a list of IRS-approved expenses. Here are a few medical expenses that your HRA may cover.

Prescription and Over-the-Counter Drugs

Most HRAs will cover prescription drug costs for non-cosmetic purposes. That includes anything you need to take to manage medical conditions like high blood pressure, diabetes, etc. It also covers over-the-counter products at your local pharmacy to treat everyday maladies.

Depending on the HRA terms, you may have to provide detailed receipts and a "Letter of Medical Necessity" signed by your doctor. As always, check your HRA's terms and consult with your company's human resources department for clarity.

Birth Control and Menstrual Products

Many don't realize this, but feminine healthcare products and birth control expenses usually fall under the eligible expenses umbrella. These items are crucial to your health, and costs can add up throughout the year. Reimbursements make them more manageable, making HRAs a valuable benefit.

Deductibles

Deductibles are common eligible medical expenses for an integrated HRA. These HRAs are only available to employees who opt to get group health insurance coverage from an employer-sponsored plan. The HRA is a supplement to make out-of-pocket deductibles more manageable, reducing how much you must pay for essential medical care.

Office Visits

Your HRA may also cover office visits to your primary care doctor, dentist, optometrist, physical therapist and more. Office fees can be substantial, even if you don't require complex care. Getting those fees reimbursed can help you save hundreds every year while maintaining your health.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at invest HSA blog.