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Health Reimbursement Arrangement

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An Employer-Funded Way to Pay for Medical Expenses

Managing health care finances can be challenging. Help is here with a Health Reimbursement Arrangement (HRA). An HRA is a medical reimbursement program that is funded for by your employer to help pay for out-of-pocket costs such as medical deductibles, copays, coinsurance and other qualified medical expenses.

HRA Advantages

Employers offer an HRA along with your health insurance plan to help offset your medical out-of-pocket financial responsibilities. Your health insurance plan may require you to pay out of your own pocket in the form of copays and/or a deductible before your insurance plan starts to pay.


HRA advantages:

  • 100% of funds come from your employer
  • No income tax on contributions
  • Typically designed to reduce your out-of-pocket expenses on qualified medical expenses

How HRAs Work

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 automatically pay your providers directly! When you enroll in an HRA, your employer agrees to fund a pre-determined amount of money per year for use on some of these expenses.

Check with your employer for details about your HRA.

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Ask your employer about starting an HRA today. 

Easily manage your health care expenses with an HRA.  An HRA is a simple, smart way to save money on your out-of-pocket costs for care.

If your employer offers an HRA, you should take advantage of it – it’s like bonus salary. HRAs are a great way to pay for high copays, deductibles, coinsurance and more.


Disclaimer: Not all states follow federal tax rules with respect to contributions made to HSAs. Please consult your tax advisor to determine the extent to which these contributions may be subject to state income tax and wage withholding rules.

Highmark Blue Cross Blue Shield, Highmark Blue Shield, Highmark Blue Cross Blue Shield Delaware, and Highmark Blue Cross Blue Shield West Virginia are independent licensees of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield Plans.  Highmark Blue Cross Blue Shield serves the 29 counties of western Pennsylvania and 13 counties in northeast Pennsylvania.  Highmark Blue Shield serves the 21 counties of central Pennsylvania and also provides services in conjunction with a separate health plan in southeastern Pennsylvania. Highmark Blue Cross Blue Shield Delaware serves the State of Delaware.  Highmark Blue Cross Blue Shield West Virginia serves the state of West Virginia and Washington County, Ohio.