how can i use hra funds 
your employer determines the types of medical expenses that an hra can be used for some plans can only reimburse services in your health plan while others might include dental vision or pharmacy services hras often but do not always reimburse other expenses such as copays hospital expenses medical equipment eyeglasses or routine doctor s visits in addition the irs also excludes certain other expenses as being unqualified for example expenses that do not qualify as necessary medical expenses include teeth whitening maternity clothes funeral services health club membership fees controlled substances childcare for a healthy baby medication from other countries and non prescription medications 20hra funding and portabilitythe health reimbursement arrangement is funded solely by the employer which also decides the maximum annual contribution for each employee s hra employers determine how much to contribute to employees hras except that all workers in the same class of employees must receive the same contribution as noted above workers who are older or who have dependents may receive more 2any hra money unspent by year end may be rolled over to the following year although an employer may set a maximum rollover limit that can be carried over from one year to the next 18 furthermore if an employee is terminated or leaves the company to work for another firm the hra does not go with them that makes it different from an hsa health savings account which is portable hra tax advantagesas a benefit to employers reimbursements through the hra are 100 tax deductible 21 as an alternative to more expensive traditional healthcare an employer may use an hra to cover the health costs of several classes of employees 22 in addition since employers fully fund the plans they offer predictability allowing employers to anticipate their approximate maximum expense for hra health benefits for the year employees may use the arrangement to pay for a wide range of medical expenses not covered by their health insurance policies depending on the hra type they may also use it for medical dental or vision insurance premiums furthermore reimbursements are tax free up to a maximum amount for a coverage period some businesses may offer employees the added advantage of other employer provided health benefits such as an fsa in conjunction with an hra 