Who sets the limits on an HRA account?

Who sets the limits on an HRA account?

• A. The employee
• B. The insurer
• C. The employer
• D. The government

Answer: (C)

HRAs are employer-established accounts, so the annual limit is defined in the employer’s plan design. The employer decides how much money the plan can reimburse each year and what expenses qualify, making the cap part of the plan document. The government provides the overarching rules HRAs must follow, and the insurer may handle administering reimbursements, but neither sets the specific yearly limit—that power rests with the employer.

HRAs are employer-established accounts, so the annual limit is defined in the employer’s plan design. The employer decides how much money the plan can reimburse each year and what expenses qualify, making the cap part of the plan document. The government provides the overarching rules HRAs must follow, and the insurer may handle administering reimbursements, but neither sets the specific yearly limit—that power rests with the employer.