A List Of HRA ELIGIBLE EXPENSES. A Quick Reference of Expenses Eligible for Health Reimbursement Arrangements (HRAs)

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1 A List Of HRA ELIGIBLE EXPENSES A Quick Reference of Expenses Eligible for Health Reimbursement Arrangements (HRAs)

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4 INTRODUCTION A Health Reimbursement Arrangement (HRA) may reimburse any expenses considered to be qualified medical expenses in IRS Publication 502, Medical and Dental Expenses, including premiums for qualified health insurance policies. Important Note: Within IRS guidelines, employers may elect which qualified expenses not to reimburse. This should be outlined in the HRA Plan Document. HRA ELIGIBLE EXPENSES Abortion Acupuncture Alcoholism Ambulance Annual Physical Artificial Limb Artificial Teeth Autoette Bandages Birth Control Pills Body Scan Braille Books & Magazines Breast Reconstruction Surgery Capital Expenses (special equipment installed for medical purposes) Car (special equipment installed for medical purposes) Chiropractor Christian Science Practitioner Contact Lenses Crutches Dental Treatment Diagnostic Services Disabled Dependent Care Expenses Drug Addiction Drugs Eye Exam Eyeglasses Eye Surgery Fertility Enhancement Founder s Fee Guide Dog / Service Animal Health Institute Health Maintenance Organization Hearing Aids Home Care Home Improvements (special equipment installed for medical purposes) Hospital Services Insurance Premiums (health related) Intellectually and Developmentally Disabled Special Home Laboratory Fees Lactation Expenses Lead- Based Paint Removal Learning Disability Legal Fees (to authorize treatment for mental illness) Lifetime Care Advance Payments Lodging (and meals at a hospital or similar institution where receiving medical care) Long- Term Care Meals Medical Conferences (concerning a chronic illness of yourself, a spouse, or dependent) Medical Information Plan Medicines Nursing Home Nursing Services Operations Optometrist Organ Donors Osteopath Oxygen Physical Examination Pregnancy Test Kit Prosthesis Psychiatric Care Psychoanalysis Psychologist Special Education Sterilization Stop- Smoking Programs Surgery Telephone Television (equipment for hearing- impaired persons) Therapy Transplants Transportation (primarily for, and essential to, medical care) Trips (primarily for, and essential to, medical care) Tuition Vasectomy Vision Correction Surgery Weight- Loss Program (for a specific disease diagnosed by a physician) Wheelchair Wig (if lost all hair from medical condition) X- ray

5 INELIGIBLE EXPENSES Babysitting Child Care Nursing Services for a normal, healthy baby Controlled Substances Cosmetic Surgery Dancing Lessons Diaper Service Electrolysis or Hair Removal Flexible Spending Account Funeral Expenses Future Medical Care Hair Transplant Health Club Dues Health Coverage Tax Credit Health Savings Accounts Household Help Illegal Operations & Treatments Insurance Premiums (non- health policies, policies Providing payment for loss of earnings, or policies for life, limb, sight, etc.) Maternity Clothes Medical Savings Account (MSA) Medicines and Drugs From Other Countries Nonprescription Drugs and Medicines Nutritional Supplements Personal Use Items Swimming Lessons Teeth Whitening Veterinary Fees Weight Loss Program (where primary purpose is appearance, general health, or sense of well- being) HEALTH REIMBURSEMENT ARRANGEMENTS HRAs allow employers to reimburse employees for medical expenses tax- free. Here are the basic steps: 1. The employer chooses monthly allowances for their eligible employees also a criteria defined by the employer. These allowances can be different based on the bona- fide job criteria of each employee class. This allowance isn't actually paid out until the HRA Administrator has approved the submitted claim. 2. Employees pay for their own medical care. This can be a doctor visit, individual insurance, prescription medicine, or a number of other qualified expenses. 3. The employer reimburses their employees up to the amount of their unused HRA balance. Allowances build from month to month, assuming the employee isn't spending the full amount. How much of the unused balance that rolls over into the next plan year is also defined by the employer. Note: Employers can customize the plan to fit their particular needs. For example, they may decide to use an HRA for dental expenses only. In other words, the list of eligible expenses above is a basic guideline. Employees should refer to their individual HRA Plan Document for specifics on their plan coverage. If you are planning to set up an HRA, we recommend choosing a high quality HRA Administrator. Zane Benefits is that Administrator. Learn more about HRAs with our free whitepaper, Health Reimbursement Arrangements 101. See for more information. DISCLAIMER The information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisions without conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. state except where noted. See a licensed agent for detailed information on your state.

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