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High Deductible Health Plans (HDHP) with Health Savings Accounts (HSA)

Link to 2008 FEHB website

Health Reimbursement Arrangement (HRA)

If you select a HDHP and you are not eligible for an HSA, you will be given an HRA. The health plan will credit a portion of the health plan premium to your account. The amount for either a Self Only enrollment or a Self and Family enrollment will be the same as the amounts that will be deposited in HSAs in the same plan. You can use funds in your account to help pay your health plan deductible and/or qualified medical expenses that do not count toward the deductible. You also can use the account to pay medicare premiums.

Features of an HRA include:

  • Tax-free withdrawals for qualified medical expenses
  • Carryover of unused credits, without limit, from year to year
  • Credits in an HRA do not earn interest
  • Credits in an HRA are forfeited if you switch health plans, or if you leave federal employment other than to retire
  • Your HRA is administered by the health plan