What is an HRA?
A health reimbursement arrangement (HRA) is an employer funded arrangement that reimburses employees for qualified medical care expenses, such as deductibles, coinsurance and pharmacy expenses. Typically, an HRA is offered in combination with a high deductible health plan.

What are the advantages of an HRA?

• Gives you choice and control over your healthcare spending
• Employer contributions to your account are not taxable income

What medical expenses can be reimbursed from the HRA?
Please refer to your specific benefit material to determine what is considered an eligible expense under your specific HRA plan.

What expenses are not reimbursable?
The Internal Revenue Service maintains a list of example expenses that are not eligible for reimbursement in Publication 502, available online at www.irs.gov.

Can I contribute to my HRA?
No, only a qualifying employer may contribute to an HRA.

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Is there a limit to how much my employer can contribute to my HRA?
Your employer determines the contribution amount to your HRA. Your employer is not limited in the amount they can contribute.

What happens if I don’t use my entire HRA balance by the end of the year?
Your employer will define the structure of the HRA plan and determine whether you may carry over all or a portion of the unused funds from year to year.

Is the HRA allocation based on a calendar year or a rolling plan year?
In general, the HRA allocation is based on the plan year. However, your employer may adjust the plan year to coincide with their medical plan’s calendar year deductible if the HRA plan is purchased mid-year.

Is my HRA portable?
No, HRAs are not portable.

Am I required to substantiate eligible expenses?
Yes, the IRS requires that all HRA transactions be substantiated. Therefore, it is very important that you save all your receipts for all your transactions.

If your employer has arranged for Automatic Reimbursement
Automatic Reimbursement eliminates your need to complete paperwork. As covered health expenses are processed by your Blue Health Plan, HRA funds are distributed by automatic reimbursement up to the amount available in your HRA. This process capability is determined by the employer.

If your Blue Health Plan has arranged for Blue Healthcare Bank Debit Card
A debit card gives you access to your HRA funds with convenience. Funds can be accessed without having to complete and file forms. The card can be used whenever an eligible expense is incurred at a qualified provider (such as an office visit or prescription at a pharmacy). The debit card can be used to pay for expenses rather than waiting for reimbursement.

Are all of my family members able to use the debit card to pay for eligible expenses?
Your debit card will be issued with your name. The member may use the debit card to pay eligible expenses incurred by anyone covered under the plan. Additional cards with the member or spouse's name can be issued by the member calling the Customer Service toll free number.

What if I have used my debit card to pay for expenses that are later reimbursed by my insurance?
If you have mistakenly used your debit card to pay for an expense that is later reimbursed by your insurance, you will be required under IRS regulations to pay back the amount to your account. It is always better to allow your health plan to process the claim and subsequently file manually for reimbursement.

What happens if my debit card is lost or stolen?
Report a lost or stolen debit card as soon as possible by calling Customer Service at 1-800-663-BLUE. You will be sent a replacement card.

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How do I submit a paper (manual) request for reimbursement?
You may submit a reimbursement request by completing, signing and submitting a Reimbursement Request Form along with the appropriate documentation. A copy of your Explanation of Benefits or receipts for prescriptions or non covered health related expenses must be provided. If an expense is subject to a deductible or coinsurance, the best option is to submit a manual reimbursement request after your insurance has processed the claim. This will help prevent the possibility that you will be required to pay back amounts for expenses covered by insurance that have been mistakenly been paid with funds from an HRA.

Accessing Your Account Information
Your HRA account information is available to you day or night. During the day, you may call our Customer Service toll free at 1-800-663-BLUE, Monday – Friday, from 8:00 a.m. to 9:00 p.m. Eastern Time. You may also access account information online anytime at www.bluehealthcarebank.com/member.
Online account information includes:

• Current available balance of your HRA.
• Recent account transactions
• Year to Date account information

Documentation (Save those Receipts!)
Save all of your supporting documentation for withdrawals from your HRA funds. You may be asked to provide the documentation, and you will be required to pay back any expenses that do not fall within IRS guidelines.

Your Monthly Statement
Blue Healthcare Bank provides monthly statements detailing account balance and activity that will be mailed to your home address.

*The Bank will make reasonable efforts to update these FAQs as needed to reflect changes in federal regulations. However, these FAQs do not constitute legal advice and The Bank makes no warranties with respect to the same.

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