HRA Portability Myths: What Really Happens When You Change Jobs

Changing jobs is stressful enough without worrying about what happens to your health benefits. If you’ve been contributing to a Health Reimbursement Arrangement (HRA) through your employer, you’ve probably heard conflicting information about what happens to that money when you move on. Let’s cut through the confusion and talk about what actually happens to your HRA when you change jobs.

The Fundamental Truth About HRAs

Here’s the most important thing to understand right up front: HRAs are employer-owned accounts. Unlike Health Savings Accounts (HSAs), which you own and control, HRAs belong to your employer. They fund it, they set the rules, and they ultimately decide what happens to the money. This fundamental ownership structure is what drives everything else about portability—or the lack thereof.

This doesn’t mean HRAs are a bad deal. They’re essentially free money your employer sets aside specifically for your healthcare expenses. But understanding who actually owns the account is crucial to having realistic expectations about what happens when you leave.

Myth #1: “Your HRA Follows You to Your Next Job”

This is probably the biggest misconception out there, and unfortunately, it’s not true. In most cases, you cannot take your HRA with you when you change employers. The funds stay with the company that established the account.

Think of it this way: your HRA is a benefit your employer provides, similar to how they might offer you a company car or a gym membership. When you leave the company, those benefits typically don’t follow you out the door. The same principle applies to HRAs.

There are extremely rare exceptions to this rule. Some employers offer what’s called a “portable” or “retiree” HRA, but these are uncommon and usually limited to specific circumstances like retirement or certain types of employment transitions. Unless your employer has explicitly stated that your HRA is portable, assume that it isn’t.

Myth #2: “You Lose Access to Your HRA Immediately”

Here’s where things get a bit more nuanced, and it’s actually better news than you might expect. While you can’t take your HRA with you, many employers allow you to submit claims for expenses incurred during your employment for a certain period after you leave.

This grace period varies significantly by employer. Some companies give you 90 days after your termination date to submit claims for medical expenses you incurred while you were still employed. Others might be more generous and offer six months or even longer. A few employers might cut off access immediately, but this is less common.

The key phrase here is “expenses incurred during your employment.” You generally cannot use your HRA funds for medical expenses that happen after your last day of employment, even if you’re still within the claims submission window. If you had a doctor’s appointment scheduled for two weeks after your departure date, that expense typically won’t be eligible for reimbursement from your old employer’s HRA.

What You Should Do Before Leaving

If you know you’re changing jobs, there are several smart moves you can make to maximize your HRA benefits:

Schedule those appointments. If you’ve been putting off that dental work, physical therapy, or specialist visit, schedule it before your last day. As long as the service is performed while you’re still employed, you can typically submit the claim during the grace period.

Stock up on eligible items. Many HRAs cover over-the-counter medications, first aid supplies, and other health-related items. If you have unused HRA funds and your plan covers these items, it might be worth making a strategic trip to the pharmacy before you leave.

Get crystal clear on your grace period. Don’t assume anything. Contact your HR department or benefits administrator and ask specifically: How long do I have to submit claims after my last day? What expenses are eligible? Do I need to do anything special to maintain access during this period?

Gather your documentation. Make sure you have receipts, invoices, and any other documentation for medical expenses you incurred while employed. You don’t want to scramble for paperwork during a grace period when you might not have easy access to company systems.

Submit pending claims before you leave. If you have receipts sitting in a drawer, don’t wait. Submit them while you still have full access to the system and can easily communicate with your benefits administrator if any issues arise.

Myth #3: “HRAs and HSAs Are Basically the Same Thing”

This confusion causes a lot of frustration because HSAs and HRAs sound similar and both help with healthcare costs, but they work completely differently when it comes to job changes.

An HSA is your account. You own it, the money is yours, and it stays with you forever regardless of employment changes. You can take it from job to job, into retirement, or keep it even if you have a gap in employment. The funds roll over year after year, and nobody can take them away from you.

An HRA is your employer’s account that they allow you to use. They own it, they fund it, and they control what happens to it. When you leave, the funds typically stay behind.

If you’re comparing job offers and both include health reimbursement benefits, it’s worth understanding which type of account you’re getting. An HSA contribution from an employer is generally more valuable in the long run because that money is truly yours to keep.

The Silver Lining

While losing access to your HRA funds might feel frustrating, remember that you never actually owned that money in the first place. It was always an employer-provided benefit, and you likely received value from it while you were employed there. Any healthcare expenses you were able to cover with HRA funds were essentially covered by your employer.

When you start your new job, you’ll have access to a new benefits package. Your new employer might offer their own option such as Benepass’ HRA solution, an HSA, or other health benefits that could be even better than what you had before.

The Bottom Line

HRA portability is limited because employers own these accounts. In most cases, you’ll lose access to the funds when you change jobs, though you may have a grace period to submit claims for expenses incurred during your employment. The best strategy is to use your HRA benefits while you have them, understand your specific plan’s rules, and plan accordingly when you know a job change is coming.

Understanding these realities helps you make informed decisions about your healthcare and job transitions without the stress of unrealistic expectations.

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