Is an HDHP required for an HRA?

Is an HDHP required for an HRA?

• A. Yes
• B. No
• C. Only if you have a PPO
• D. Only if your employer chooses

Answer: (B)

An HRA is funded by the employer to reimburse medical expenses and does not require the employee to be on a high-deductible plan. You can pair an HRA with different types of health plans—PPOs, HMOs, or HDHPs—depending on how the employer structures the arrangement. The requirement for an HDHP applies to HSAs, not HRAs. HRAs simply specify what expenses are reimbursable and, in some cases, may allow limited premium reimbursements, but the underlying plan doesn’t have to be HDHP. So, an HDHP is not needed for an HRA.

An HRA is funded by the employer to reimburse medical expenses and does not require the employee to be on a high-deductible plan. You can pair an HRA with different types of health plans—PPOs, HMOs, or HDHPs—depending on how the employer structures the arrangement. The requirement for an HDHP applies to HSAs, not HRAs. HRAs simply specify what expenses are reimbursable and, in some cases, may allow limited premium reimbursements, but the underlying plan doesn’t have to be HDHP. So, an HDHP is not needed for an HRA.