Healthcare Reimbursement Arrangement (HRA)
Make healthcare more affordable with help from your employer
Why sign up for a HealthFlex HRA from WageWorks?
Your WageWorks® healthcare benefit account(s) can be used to pay for eligible healthcare expenses for you and your eligible dependents. It’s important to understand the definition of “eligible dependent” in the context of these accounts to make sure your claims are processed and you are reimbursed for your expenses quickly.
You can use your WageWorks healthcare benefit account(s) to pay for the eligible expenses of a qualifying child or relative, as defined in Internal Revenue Code Section 152. Generally, a qualifying child or relative is:
A domestic partner is not considered a spouse under federal law, so a domestic partner's medical expenses cannot be reimbursed under your WageWorks account unless the domestic partner is a “qualifying relative” of the participant. A qualifying spouse must be legally married.
HealthFlex Limited-Purpose HRA (HSA Compatible HRA)
A Smart Way to Maximize Your Savings
If you’re enrolled in a qualified high-deductible health plan (HDHP) and have a Health Savings Account (HSA), you can still use any remaining funds from a previously established HealthFlex Health Reimbursement Arrangement (HRA) with a WageWorks® Limited-Purpose HRA (HSA Compatible HRA). This account can reimburse your eligible out-of-pocket expenses for vision and dental care, while you take advantage of the long-term savings power of an HSA. There are typically no new HealthFlex HRA contributions for individuals in a qualified HDHP, but the Limited-Purpose HRA allows you to legally use your rolled-over HealthFlex HRA funds for some expenses so you can save your HSA dollars for other/future expenses.
Limited-Purpose HRA 101
Savings with Your Limited-Purpose HRA
A Limited-Purpose HRA works with an HSA to maximize your savings. With your HRA, you can pay for vision and dental expenses with money that your employer previously contributed to your account. It’s like extra money in your pocket. Remaining funds in a Limited-Purpose HRA may be rolled over to the next year. If you are no longer covered by a HDHP, you may be able to return to a full-use HRA. Check with your benefits administrator for details about your HRA.
Qualifying for a Limited-Purpose HRA
A Limited-Purpose HRA is a great way to maximize your savings this year and in the future. But there are rules guiding your participation in this account.
A Limited-Purpose HRA is right for you if:
If you have a remaining HealthFlex HRA balance and enroll in a HealthFlex HDHP, your HRA will automatically be converted to a Limited-Purpose HSA; you can contact WageWorks with any questions or to confirm.* Figures are current for 2016
Employer Contributions to Your Limited-Purpose HRA
Unlike other healthcare benefit accounts, such as a Healthcare Flexible Spending Account or a Health Savings Account, you don’t make contributions to your Limited-Purpose HRA—only your employer does. An HRA is funded 100% by your employer. For HealthFlex participants in an HDHP, no new employer contributions are typically made to the HRA.
Key Features and Benefits of Your WageWorks Limited-Purpose HRA
Variety of Payment Options Make Your Limited-Purpose HRA Easy to Use
With a variety of convenient payment options, your WageWorks Limited-Purpose HRA makes it easy for you to get reimbursed for many eligible dental and vision care expenses, like copayments for dentist and optometrist visits, orthodontia, and new eyeglasses or contact lenses.
Payment options include:
Web Portal and Mobile App Make Your Limited-Purpose HRA Easy to Manage
WageWorks makes it easy to manage your Limited-Purpose HRA. Log into the WageWorks secure web portal to manage all aspects of your WageWorks account:
The WageWorks EZ Receipts® mobile app puts the power of the WageWorks web portal in the palm of your hand. Download this handy app to your mobile device, log in to your account, and check balances, submit claims, view transactions, snap photos of receipts, get account alerts by text or email—all on the go!
While your Health Reimbursement Arrangement (HRA) is designed to be simple, all HRAs are governed by pretty strict rules set by the IRS.
Here are five easy ways to comply with the rules and get the most out of your HRA.
1. Know Who’s Eligible
Your HRA covers qualified healthcare expenses for you and your eligible dependents. Eligible dependents include a spouse, children under the age of 26, and children over age 26 who are tax dependents. Domestic partners are eligible if they qualify as tax dependents.
2. Know What’s Eligible
Your employer determines what’s eligible for reimbursement from your HRA. Generally, eligible expenses include medical, vision, and dental care services and products that are medically necessary to treat a specific medical condition, office visits, diagnostic tests, and immunizations. Look up a specific eligible expense, or log into your WageWorks account for a complete list.
3. Keep Your Receipts
The IRS has specific rules for HRAs and you always have to verify expenses with receipts. Save receipts for each eligible expense you submit for reimbursement under your HRA. Make sure receipts include the following five pieces of information:
WageWorks makes it easy to manage your receipts. Take a photo of each receipt and store them in the WageWorks® EZ Receipts® mobile app.
4. Watch Where You Shop
Get reimbursed for your eligible expenses quickly. Use the WageWorks Healthcare Card associated with your HRA at pharmacies, healthcare providers, and general merchandise stores that have an IRS-approved Inventory Information Approval System in place when you check out. Before using your card, always visit the sigis.org site for a list of approved merchants that have an IRS-approved inventory system in place.
5. Monitor Your Account
WageWorks makes it easy to manage your HRA. Log into your WageWorks account via a secure web portal regularly to check balances, view claims, verify expenses, upload copies of receipts, and more! Sign up to receive text and email alerts so you won’t miss important notices and always know what’s going on with your account.