HRA (Health Reimbursement Arrangement) funds can be used to reimburse employees for eligible medical expenses, but the exact list of covered expenses depends on how the employer designs the plan.
The IRS sets the general rules—HRAs can only reimburse qualified medical expenses under Section 213(d) of the tax code. This includes things like:
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Doctor visits and specialist copays
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Prescription medications
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Deductibles and coinsurance
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Dental and vision expenses
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Medical equipment and supplies
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Mental health services
However, employers have the flexibility to limit which of these expenses are covered under their specific HRA plan. For example, one employer may allow reimbursement for dental and vision, while another may limit the HRA to deductible expenses only.
đź’ˇ Can HRAs Cover Health Insurance Premiums?
Yes, in some cases—especially with newer types of HRAs:
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ICHRA (Individual Coverage HRA): Can reimburse premiums for individual health insurance
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QSEHRA (Qualified Small Employer HRA): Can reimburse individual premiums and other eligible expenses
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Retiree HRAs: Often used specifically to reimburse premiums for Medicare or other retiree coverage
Traditional HRAs tied to group health plans may or may not cover premiums—it depends on the employer’s plan design.
🔍 Bottom Line:
HRAs are highly customizable. The types of expenses you can be reimbursed for will depend on:
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The type of HRA being offered
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The employer’s specific plan rules
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Compliance with IRS guidelines
Always check your plan documents or ask your HR department for a list of eligible expenses under your company’s HRA.