Short answer: Usually you lose access to your HRA when you leave a job, and unused funds revert to the employer, because the HRA is employer-owned. Exceptions include COBRA continuation (where available) and retiree HRAs.
In most cases, you lose access to your HRA when you leave your job, and any unused funds are forfeited back to the employer.
That’s because a Health Reimbursement Arrangement (HRA) is employer-owned, not employee-owned. The employer funds the account, sets the rules for how it works, and typically retains any unused balance when employment ends.
Are There Any Exceptions?
Yes, there are a few situations where you might retain access to HRA funds after leaving your job:
COBRA Continuation
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In many cases, you can continue your HRA through COBRA, just like group health insurance.
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You’ll usually pay a monthly premium (often 102% of the HRA value) to keep your HRA active.
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Not always worth it, especially if you’ve already spent your balance or don’t expect new expenses.
Retiree HRAs
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Some employers offer Retiree Health Reimbursement Arrangements, which are specifically designed for use after retirement.
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These may reimburse Medicare premiums, out-of-pocket medical costs, or other eligible expenses.
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Funds in a retiree HRA are often available for life, depending on plan rules.
Plan-Specific Provisions
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Some employers allow a grace period after termination to submit claims for expenses incurred while still employed.
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A few plans may offer extended access (e.g., through severance packages), but this is not typical.
Bottom Line:
Unless you elect COBRA or have a retiree-specific HRA, you’ll lose access to your HRA funds when your employment ends, even if you haven’t used all the money. If you’re planning to leave a job soon, it may be smart to use your HRA funds while you still can.
Tip: Check your plan documents or ask HR about the specific rules for your company’s HRA.