Health Reimbursement Account (HRA)
A Health Reimbursement Account (HRA) is an account that you can use to pay out-of-pocket medical expenses with pretax dollars when you are enrolled in the HRA Medical plan. You can use HRA money to pay for eligible medical expenses for you and your covered dependents. HRAs are also a way for an individual or a family to pay for medical expenses without the funds being taxed by the government beforehand. The employee may not contribute to the HRA. Please note: Funds available for reimbursement are limited to the balance in your HRA.
For Your Protection
The out-of-pocket maximum provides financial protection in the event of a serious illness or injury. The out-of-pocketmaximum includes your payments for covered in-network or out-of-network expenses, as applicable, and is withdrawnfrom your funds. The out-of-pocket maximum, however, does not include penalties (such as a late cancellation fee for adoctor’s appointment). After you reach your out-of-pocket maximum, the plan covers all expenses up to 100% for therest of the year.
How the HRA Works
UIC contributes to your account.
$800 for individual employees | $1,600 for a family.
Your expenses are paid by your HRA.
Your HRA pays your eligible deductible and coinsurance amounts.
You make all applicable copayments at the doctor’s office.
These payments apply toward your deductible.
You pay your deductible.
After you use all of your HRA funds, you then pay the rest of the deductible amount out of yourown pocket.
After that, you pay only coinsurance.
Once you have met your deductible, you share in the cost of the expenses. This is called coinsurance.