Get the Most Out of Your HRA

If you have certain health care expenses, they may be eligible for reimbursement through the Health Reimbursement Plan (HRA). However, you must have the proper substantiation, as required by the Internal Revenue Service regulations that govern this type of plan. Substantiation is proof—typically a letter of medical necessity, store receipt or, for over-the-counter drugs, a doctor’s prescription—that certain expenses are qualified.

Keep all your receipts. There is a possibility that American Benefit Corporation may ask you to verify a purchase and you will need to show the receipt as proof, even if you used your HRA debit card at an Inventory Information Approval System (IIAS)-certified merchant. You may also need your receipts for tax purposes.

For example, when you use your HRA Debit Card at a medical or vision care provider, you will need to provide American Benefit Corporation with a copy of that receipt to be reimbursed for the expense. Although some stores and doctors’ offices have certified IIAS technology that tells you, at the time of purchase, if your items are approved and processed correctly, it is always a good idea to keep all your receipts.

In fact, if you want, you can mail or fax your receipts to American Benefit Corporation immediately after using your HRA Debit Card. The system will be updated so that when the charge is processed, the substantiation required will already be recorded and no follow-up will be necessary. You can mail your receipts to American Benefit Corporation, HRA Department, 3150 US Route 60, Ona, WV 25545 or fax to 304-525-6005.

A quick review of how a HRA works. Your employer contributes toward a Health Reimbursement Account (HRA) on your behalf for each hour you work. This contribution is part of the negotiated employer hourly contribution to the Plan. Then, as your HRA balance grows, you can use your account to pay for eligible health care expenses not covered by the Plan. Any unused HRA balance is rolled over from year to year, so it is possible to use these accumulated funds to pay for larger expenses you may have in the future.

If you have any questions about eligible expenses, using your HRA debit card, or how to file a claim, contact American Benefit Corporation at 1-304-525-0331 or 1-888-466-9094 and ask for the HRA Department.