Can You Use Your HRA for Glasses and Vision Care?

Health Reimbursement Arrangements (HRAs) are employer-funded accounts designed to help employees manage healthcare costs. They allow individuals to receive reimbursement for qualified medical expenses, offering a tax-advantaged way to pay for various health services and products. This article explores how HRAs can be utilized for vision care, particularly for eyeglasses, and outlines the reimbursement process. Understanding HRA eligibility for vision-related needs can help individuals maximize this employer-sponsored benefit.

Understanding Health Reimbursement Arrangements (HRAs)

An HRA is an employer-sponsored arrangement where an employer sets aside money to reimburse employees for healthcare expenses. Unlike a traditional health savings account (HSA), the employer owns HRA funds, meaning they typically do not transfer with an employee who leaves the company, though some plans allow limited carryover. HRAs are not health insurance; they help employers assist with out-of-pocket medical costs not covered by traditional insurance.

Employers establish the specific rules for their HRA plans, including eligible expenses beyond general IRS guidelines. Different types of HRAs exist, such as Qualified Small Employer HRAs (QSEHRAs), Individual Coverage HRAs (ICHRAs), and Group Coverage HRAs (GCHRAs). These arrangements primarily reimburse employees for expenses defined as qualified medical expenses under Section 213(d) of the Internal Revenue Code. An HRA’s design determines its interaction with other health coverage an employee may have.

Eligible Vision Care Expenses

Many vision care expenses are generally eligible for reimbursement through an HRA, aligning with the IRS definition of qualified medical expenses. Eyeglasses, including prescription lenses and frames, are typically covered expenses for vision correction. This also extends to prescription contact lenses and their care solutions. Routine eye examinations, important for maintaining eye health and updating prescriptions, are usually eligible.

Prescription sunglasses, which provide both vision correction and UV protection, commonly qualify for reimbursement. Some HRA plans may include significant vision correction procedures, such as LASIK surgery. Eligibility for these items requires they be for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body, as outlined in IRS Publication 502. Employees should consult their HRA plan documents to confirm coverage details, as employer-specific rules can sometimes narrow the scope of eligible expenses.

The Reimbursement Process

Obtaining reimbursement for eligible vision expenses through an HRA involves a straightforward process. The first step requires gathering all necessary documentation related to the expense. This includes an itemized receipt from the optical provider, clearly showing the date of service, the type of service or product purchased (e.g., eyeglasses, contact lenses), and the total cost. A proof of payment, such as a credit card statement or bank transaction record, should also be retained. For prescription items like glasses or contacts, a copy of the eye doctor’s prescription is often required to substantiate medical necessity.

Once all documentation is collected, the next step is to submit a reimbursement claim. Many employers utilize online portals or mobile applications from a third-party administrator for convenient submission. Claims can also be submitted via mail using a paper claim form. Employees should submit their claim promptly, generally within a specific timeframe set by the plan, which could be 30 to 90 days after the expense is incurred.

After submission, the claim undergoes a review by the HRA administrator to ensure all requirements are met and the expense is eligible. Processing times vary, but reimbursements are typically disbursed within 5 to 10 business days of claim approval. Funds are commonly paid via direct deposit to the employee’s bank account or through a mailed check. Employees are usually notified of their claim status through the online portal or email.