The employer owns the money in a Health Reimbursement Arrangement (HRA)—not the employee.
Unlike an HSA (which is employee-owned and portable), HRAs are employer-funded and employer-controlled. The funds never belong to the employee, even if they’ve already been “credited” for the year.
🔄 What Happens to Unused Funds?
Any unused HRA funds at the end of the plan year—or when an employee leaves the company—generally go back to the employer, unless the plan specifically allows for:
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Rollover of unused funds to the next plan year (employer’s choice)
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Post-termination access (rare, except in retiree HRA arrangements or with COBRA coverage)
The employer decides whether any unused balance can carry forward and for how long. Some plans allow rollover of a portion of the funds, while others are “use-it-or-lose-it.”
🧳 Why HRAs Are Not Portable
Because the employer funds and controls the HRA, the account doesn’t go with the employee when they leave the job. If you’re terminated or resign, any remaining HRA funds typically stay with the employer, unless you’re eligible and elect COBRA continuation for the HRA or your employer offers a retiree HRA.
In short: HRAs are a valuable benefit while you’re employed, but they’re not a long-term savings vehicle like an HSA.