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:
âś… 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.
âś… 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.
âś… 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.