Health reimbursement accounts (HRAs)
New to an HRA? Learn the basics.
HRAs are a way for employers to help offset their employees’ health care costs for eligible expenses and gain tax advantages.
Optum Bank Mastercard ®
Your health reimbursement account (HRA) with Optum Bank® includes an Optum Bank Mastercard®.
The Optum Bank Mastercard® is a fast and convenient way to pay for eligible medical expenses without submitting paper claim forms. Use it at the pharmacy, pay at the doctor’s office or write your payment card number on your provider bill. Just remember to keep your receipt, because transactions may have to be validated or substantiated per IRS guidelines.
How it works
With an HRA, employers contribute money for each employee to pay for eligible out-of-pocket medical costs. Employers can choose whether to allow the funds to be used for all qualified medical expenses approved by the IRS or a subset of eligible qualified expenses.
When employees incur eligible qualified medical expenses, they can submit claims to be reimbursed from the HRA.
Submitting claims and getting reimbursements
You can also pay for eligible health care expenses with a personal credit card or check. Then submit a claim online or by email, mail or fax. Along with the claim, send a receipt that shows:
- The name of the doctor or other service provider, pharmacy or store
- The date of service or purchase
- A description of the service(s) or item(s) purchased
- The amount charged (or what you are responsible for paying)
What is an ICHRA?
An individual coverage health reimbursement arrangement (ICHRA) is an innovative solution that provides an expansion of HRA health benefits for employees. It represents a more modern model of health insurance.