How to HRA Companies (2026) | HSA Tracker

An HRA is a self-insured medical expense reimbursement plan provided by an employer. The employer sets aside a certain amount of money to reimburse employees for qualified medical expenses. These funds are not pre-funded; rather, the employer pays claims as they are incurred, up to the set limit.

There are various types of HRAs, each with specific rules. The most common include: Integrated HRAs (paired with a group health plan), Qualified Small Employer HRAs (QSEHRAs, for small employers not offering group plans), Individual Coverage HRAs (ICHRAs, for employers to reimburse individual market premiums), and Excepted Benefit HRAs (EBHRAs, offering limited benefits alongside other coverage).

HRA funds are used to reimburse employees for eligible medical expenses, as defined by IRS Publication 502 and the specific HRA plan document. This can include deductibles, co-payments, co-insurance, and sometimes even dental and vision care. The reimbursement process usually involves submitting a claim to your HRA company with proof of the expense.

To be eligible for an HSA, you must be enrolled in an HSA-qualified HDHP. For 2026, the minimum deductible for an HDHP is $1,700 for self-only coverage and $3,400 for family coverage, up from $1,650 and $3,300 respectively in 2025. The out-of-pocket maximum for 2026 is $8,500 for self-only and $17,000 for family coverage, up from $8,300 and $16,600.

The primary rule for HSA eligibility is having no other disqualifying 'first-dollar' health coverage. This means any HRA that pays for medical expenses before your HDHP deductible is met could disqualify you from contributing to an HSA. However, certain HRAs are designed to be HSA-compatible: 'limited-purpose HRAs' (covering only dental, vision, or preventive care) and 'post-deductible HRAs'

While most HRAs don't have a universal IRS-mandated contribution limit like HSAs, the 'Excepted Benefit HRA' (EB HRA) does. For 2026, the maximum employer contribution for an EB HRA is $2,200, an increase from $2,150 in 2025. This type of HRA is specifically designed to cover a limited set of benefits, like dental or vision, and is often offered alongside other health coverage.

Modern HRA companies should offer intuitive online portals and mobile apps for employees to submit claims, track balances, and view eligible expenses. A clunky or outdated system can lead to frustration, delayed reimbursements, and underutilization of benefits. Look for features like receipt scanning, direct deposit options, and clear dashboards.

Healthcare benefits can be confusing, and employees will have questions about eligibility, claims, and balances. High-quality customer support from HRA companies is essential. Look for providers offering multiple contact channels (phone, email, chat), clear communication on claim status, and knowledgeable representatives.

HRA companies typically charge administrative fees, which can vary widely. For employers, these fees might be per employee per month, per claim, or a percentage of the total HRA funds. Ensure the fee structure is transparent and easy to understand, without hidden costs.

For those with both an HSA-compatible HRA and an HSA, a smart strategy is to use the HRA funds first for eligible expenses, especially for smaller, routine costs. This allows you to preserve your HSA balance, letting it grow tax-free through investments for future, larger medical expenses or retirement healthcare.

The IRS adjusts HSA contribution limits, HDHP deductibles, out-of-pocket maximums, and HRA-related limits annually due to inflation. For 2026, we've seen increases across the board for HSAs and HDHPs, including a $2,200 maximum for Excepted Benefit HRAs.

Whether you're an individual or an HR manager, detailed record-keeping is paramount. For individuals, keep all receipts, Explanation of Benefits (EOBs), and documentation for expenses reimbursed by your HRA or paid with your HSA. This is crucial for verifying qualified expenses in case of an IRS audit.