Maximizing Your Health Reimbursement Account Benefits: Tips and Tricks
If you have a Health Reimbursement Account (HRA), you have made a smart decision to manage your healthcare expenses. The HRA is becoming a popular benefit option for employers and is being offered to employees as part of their benefits package. However, maximizing your HRA benefits can be tricky if you don’t know how it works. In this article, we’ll explain everything you need to know about the HRA and how to make the best use of it.
Understanding the Health Reimbursement Account (HRA)
An HRA is an employer-funded account that reimburses employees for qualified medical expenses. The employer sets a specific amount of money that can be used to pay for out-of-pocket medical expenses. The HRA is owned by the employer, so if you leave the company, you may lose the funds. However, some plans do allow the employee to keep the funds.
The HRA can be used to pay for most medical expenses, including deductibles, copays, and coinsurance. It can also be used for prescription drugs, vision, and dental expenses. However, it cannot be used to pay for health insurance premiums.
Maximizing Your HRA Benefits
To make the most out of your HRA benefits, you will need to understand the plan rules and make strategic decisions.
1. Know what is covered
Before spending any funds from your HRA, be sure to read the plan documents to understand what expenses are eligible for reimbursement. Make a list of all the eligible medical expenses that you or your family might incur, including scheduled medical procedures, copays, deductibles, and prescription drugs.
2. Plan your expenses
Knowing what’s covered can help you plan your expenses effectively. If you have an upcoming medical expense that you know isn’t covered under your health insurance plan, use your HRA funds to cover the cost. You can also estimate your future medical expenses and allocate funds accordingly.
3. Keep track of your expenses
It’s always important to keep track of your HRA expenditure. You don’t want to miss out on any reimbursements that you are entitled to. The easiest way to keep track of your expenses is to keep your receipts and submit them promptly.
4. Use it or lose it
Remember, the HRA is a use-it-or-lose-it plan. If you don’t use up the funds within the plan year, you lose the money. Plan your expenses according to the time frame. Submit your expenses promptly, so you don’t end up forfeiting the funds.
5. Keep an eye on the balance
Always keep an eye on your HRA account balance. This will help you to prioritize your expenses and plan effectively. Take advantage of the HRA reimbursements and keep a healthy balance.
Conclusion
The Health Reimbursement Account is an excellent addition to your employee benefits package. Maximizing your HRA benefits requires careful planning and due diligence. By understanding the plan rules, keeping track of your expenses, and planning your medical expenses, you can make the most out of your HRA and save money. Remember to keep an eye on the balance and submit your expenses promptly. With these tips, you can achieve greater financial control over your healthcare expenses.
In summary, the HRA is a smart benefit option that can help you protect your finances while managing your healthcare expenses. Be sure to take advantage of it.
