Page 37 - Takoma Park Benefits Guide 2022

Health Reimbursement

HRA Rules & Regulations
Arrangement Handbook • Only your employer can contribute

to an HRA; no employee
Paying for health care is now easier and less expensive with a Health contributions are allowed.
Reimbursement Arrangement (HRA) from ConnectYourCare.
• The IRS requires that all HRA
purchases be verified as eligible
What is an HRA? expenses. Sometimes, purchases
An HRA is a tax-advantaged account funded by your employer to are automatically verified when
cover your health care costs. The money contributed to this account you use your card. Other times, we
is not taxed, and you can access these funds to pay for any qualified will request itemized receipts.
medical expense for you or your dependents.

• Multiple uses. There are hundreds of
eligible expenses for your HRA funds, Don’t be the
including prescriptions, some over- last to enroll
the-counter medications, doctor office in an HRA!
copays, health insurance deductibles
It’s quick,
and coinsurance. HRA funds may even
easy and no
be used for eligible expenses for your • Always save your itemized
cost to you.
spouse or federal tax dependents. See receipts! At times, we may request
the list of Eligible Expenses in this documentation to verify your
guide for more details. purchase was eligible. It’s a quick
and easy process to submit
• Easy to access. Funds in the account are easily accessed
receipts, but keeping your itemized
with the payment card. Your account balance is receipts on file makes it easier
available at any time online, through the mobile app, or when the time comes.
over the phone.

• Rapid reimbursements. Paying for health care expenses

is easy when you use your payment card. If you do not

use your card, you can quickly and easily create your
claim online. Once you submit your receipts, we will
reimburse you via check or direct deposit.

• Out-of-pocket costs are covered. You are responsible
for any portion of your health care that is not covered
by your medical, dental or vision plans, including the
deductible, copays, coinsurance and other un-
reimbursed amounts. The HRA can be used to cover
these costs.

• Tax advantages. Contributions are not taxable to you,
and distributions are not taxable as long as they are
spent on eligible health care expenses.

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