Health Reimbursement Arrangement (HRA)
Tax-Free reimbursement for everyday health expenses
Overview & Eligibility
Employers decide how much they will put into the HRA.
Remaining balances may roll over from year to year, depending on how the employer designs the plan.
The Value for Employees
Employees can spend HRA funds on deductibles, coinsurance, copays, prescriptions, dental services, over-the-counter medicine, and other qualifying expenses, as determined by their employer.
HRAs are funded by the employer to help offset out-of-pocket healthcare costs. Funds are tax-free for the employer and employee.
Employees will receive an Ameriflex Debit Mastercard® linked to their HRA. Employees can use their card for eligible purchases everywhere Mastercard® is accepted. Account information can be securely accessed 24/7 online and through the mobile app.
The Value for Employers
HRA contributions are tax deductible. Employers can even reimburse different amounts for single and family participants, as well as decide what the HRA covers, such as deductibles, copays, prescriptions, over-the-counter medications, etc.
Helping employees pay for everyday medical expenses can aid in employee retention and recruitment.
Healthcare is complicated. The Ameriflex Client Relationship Team is eager to answer questions and provide assistance. Our 85+ Net Promoter Score (NPS) far exceeds the healthcare average.
Card Swipe Guarantee®
One-of-a-kind in the industry, the new Card Swipe Guarantee® is a feature offered to all Ameriflex FSA and HRA customers where Ameriflex will take on the compliance liability around documentation. Our advanced technology allows us to ensure that participants’ FSA and HRA-eligible card transactions will go through without requiring them to submit further documentation.
What does this mean for you?
- You can be confident that your clients’ participants’ claims are legitimate.
- Your clients’ participants don’t have to worry about their card swipe being denied at the point of sale for qualified purchases.
- Your clients’ participants can enjoy a frictionless claims experience.
- In the event of an IRS audit or an IRS challenge to any qualified paid expense, Ameriflex will assist in satisfying any IRS enquiry.
Health Reimbursement Arrangement (HRA) FAQ
What do employers need to offer an HRA to their employees?
Any employer that offers a group health plan can add an HRA. HRAs are fully funded by the employer, and Ameriflex handles setup, administration, and ongoing support so your HR team doesn’t have to manage day-to-day operations.
How does offering an HRA save employers money?
Employer contributions to an HRA are tax-deductible, which reduces taxable income. Employers can also design the HRA to reimburse specific expenses, such as deductibles or prescriptions, giving flexibility to control costs while helping employees with everyday healthcare expenses.
What is the Card Swipe Guarantee® and how does it protect employers?
Ameriflex’s Card Swipe Guarantee® ensures that eligible HRA transactions are approved at the point of sale without requiring additional documentation. Ameriflex assumes the compliance liability and will assist with any IRS inquiries, removing risk and simplifying administration for employers.
How does an HRA support recruitment and retention?
Offering an HRA helps employees manage healthcare costs tax-free, which can reduce financial stress. In competitive job markets, providing this benefit demonstrates that your organization invests in employees’ well-being, helping attract and retain top talent.
What is the difference between an HRA and an FSA, and which should employers offer?
HRAs are fully employer-funded and flexible in design, while FSAs can be funded by the employer, employee, or both and are subject to “use it or lose it” rules (with limited carryover). Employers who want to control costs and reimburse specific medical expenses often choose an HRA, while FSAs may be used alongside HRAs for broader coverage.
How much administrative work does an HRA create for HR?
Very little. Ameriflex manages claims processing, compliance, employee support, and reporting. Employees can access their accounts and submit claims online or via the Ameriflex mobile app.