Which statement about HDHPs and HRAs is true?

Which statement about HDHPs and HRAs is true?

• A. An HDHP is required for an HRA
• B. An HDHP is not required for an HRA
• C. An HRA can only be funded if you also have an HDHP
• D. An HRA must be paired with a high-deductible plan

Answer: (B)

HDHPs and HRAs operate independently. An HRA is an employer-funded account that reimburses qualified medical expenses, while a high-deductible health plan is a plan design with a high deductible. There’s no rule that an HRA must accompany an HDHP, so an HRA can be offered with traditional plans as well as with HDHPs. This flexibility means the statement is true: an HDHP is not required for an HRA. (Note that if you’re considering HSAs, eligibility is a separate matter and can be affected by certain HRA setups, but that doesn’t change the basic relationship between HRAs and HDHPs.)

HDHPs and HRAs operate independently. An HRA is an employer-funded account that reimburses qualified medical expenses, while a high-deductible health plan is a plan design with a high deductible. There’s no rule that an HRA must accompany an HDHP, so an HRA can be offered with traditional plans as well as with HDHPs. This flexibility means the statement is true: an HDHP is not required for an HRA. (Note that if you’re considering HSAs, eligibility is a separate matter and can be affected by certain HRA setups, but that doesn’t change the basic relationship between HRAs and HDHPs.)