Health reimbursement arrangement (HRA)
Employers can fund an account with tax-free dollars to help employees and their covered dependents pay for healthcare expenses not covered by the health plan.
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Help employees manage out-of-pocket healthcare expenses
As an employer, a Humana Access® health reimbursement arrangement (HRA) provides you with a way to reduce your health benefits costs while providing your employees with a way to help manage their out-of-pocket healthcare expenses.
- Fund the account throughout the year – You don’t have to set aside all the cash upfront that is necessary to support your HRA. Simply provide a deposit, and add more as employees use their funds.
- Flexibility to determine carryover – Employers may allow unused funds to carry over to next year, as long as the employee chooses the same type of plan. You can set a maximum allowed to carry over or not allow any unused funds to carry over.
- Single-source management – Humana manages and administers the HRA and Humana Access Mastercard® debit card, easing your administrative effort. We can integrate flexible spending account (FSA) administration, as well.
Advantages for employees, too
- “Pay-down” of health plan deductible – HRA funds can be used for medical expenses like doctor’s office visits to reduce what your employees pay toward the deductible.
- Easy access to HRA funds – The Humana Access Mastercard debit card allows employees to easily pay for eligible expenses.
- Greater control – Members can use HRA dollars in several ways, such as out-of-pocket costs for prescriptions, medical care, dental expenses and vision care.
What you need to know about HRAs:
- Fully funded by the employer
- Your contributions are non-taxable
- You choose how much of the medical plan deductible employees pay before HRA funds are available, as well as what types of expenses the HRA covers, such as medical, dental and/or vision
- Unused funds can carry over year-to-year
- Subject to continuing of coverage as provided by COBRA
- If employee leaves the company or retires, the funds are forfeited