An HRA is an employer-sponsored benefit plan funded solely by the employer that allows employees to receive reimbursement for qualified expenses.
HRAs are owned and funded by the employer. Therefore, the employer works with a benefits administrator to set up plan design, which may vary from company to company. Employers must provide a Summary Plan Document (SPD) that outlines the plan details. There is NO healthcare plan requirement for an HRA, and if you leave the employer for any reason, the funds in your HRA are no longer available to you.
Each employer decides how much to contribute to their employees’ HRAs; therefore, funding may vary. It’s important to remember that funding cannot be deducted from the employee’s paycheck. Each employee should receive the same benefit amount, though the plan may allow a difference for single workers versus those with families.
For more information about HRAs, check out these blogs from the Captain: