Employers offer HRAs with their health insurance plans to help offset out-of-pocket health costs. The specific costs that you’re responsible for depend on your plan.
When you receive medical services, the doctor or medical facility will send a claim to your health insurer. Sometimes, your insurance will only pay for a portion of these expenses – leaving you responsible for the rest.
HRAs are a convenient way to cover the rest of these expenses and most HRAs automatically pay your providers directly. If an HRA is offered with your plan, your employer agrees to fund a pre-determined amount of money per year to help pay for some of these expenses.
Check with your employer for details about your HRA.
An HRA is a simple, smart way to save money on your out-of-pocket costs for care. It’s like getting extra money from your employer — money that you can use to pay for copays, deductibles, coinsurance, and more.