Another option to help you plan and pay for out-of-pocket medical costs is a Health Reimbursement Arrangement, or HRA. If your high-deductible health plan includes an HRA, you can use the HRA funds to help meet that deductible, your coinsurance costs, prescriptions and other out-of-pocket expenses your employer has pre-approved.

The HRA lets your employer set aside pre-tax and tax-deductible dollars to be used for your pre-approved medical expenses. Using your HRA to pay for certain medical expenses empowers you with the flexibility and choice to make wiser health care decisions.

1. Your employer contributes funds to your HRA “account”
2. The funds may be used to cover certain medical expenses your employer selects
3. You use a debit card to pay qualified medical expenses
4. The arrangement is owned by the employer
5. If you change jobs, the HRA ends and any funds stay with the employer

How an HRA works

With an HRA, you learn more about the true cost of care by using your HRA funds to pay for certain medical services and prescription drugs. As a result, you learn how to choose and buy health care services more wisely. With an HRA:

1. You get to think and act more like a consumer when it comes to health care – comparing cost, quality and value.
2. When you visit the doctor, dentist or pharmacist, your HRA is designed to help you pay the entire cost at the time of service.
3. Your HRA covers out-of-pocket costs your employer has pre-approved as long as there are funds available in your account.
4. Be sure to use services wisely and budget the funds in your account to last throughout the year.
5. Remember to take advantage of our pre-negotiated discounts, and be sure to choose providers who participate in your plan’s specific Blue Network (P, S, or K).

Tips on using your HRA

Here are a few things to keep in mind when using your HRA.

When paying for medical services:

1. Ask your provider to estimate the amount of your financial responsibility before accepting services.

2. Choose a provider that participates in your specific Blue Network so you benefit from the discounts we have arranged with that provider.

3. Always check your Explanation of Benefits form (EOB) after a claim is submitted. The EOB will show what you owe the provider.

4. If your EOB shows you owe less that what you paid your network provider, the provider will reimburse you that amount. If you don’t receive a refund within a reasonable time, check with your provider to see if you have a credit balance.

When talking with your provider about costs:

• Ask if you can wait to pay fees until you have received the EOB that outlines final costs, or ask if you can pay a portion of the charges until you have received an EOB.
• If the deductible amount is more than you can afford to pay at that time, ask your provider about a payment plan. If the visit is for preventive services, you may only be required to pay the copay amount.
• If the provider requires payment up front, then you may not want to use your debit card, since the cost at time of service may be higher than the actual final cost to you. You may want to use another form of payment and then reconcile a reimbursement from your HRA when the final discounted fees are determined.

When paying for prescriptions:

1. Whether or not your health plan includes prescription drug coverage, you may use your HRA account to pay for prescriptions.
2. If you have prescription drug coverage and use a network pharmacy, you’ll pay the lesser of our “preferred price” or the pharmacy’s usual price for the drug. The network pharmacy will file a claim for you, and we will reimburse you for any covered expenses.
3. If you do not have prescription drug coverage, you must pay the full cost of the prescription at the pharmacy. If you use a network pharmacy, you’ll pay the lesser of our “preferred price” or the pharmacy’s usual price for the drug. However, the amount will not be applied to your health plan deductible.