What is DVRA Under HSA?

Many people are familiar with HSAs (Health Savings Accounts) as a way to save for medical expenses tax-free. However, not everyone may be aware of DVRA (Deemed VRA) under HSAs. DVRA stands for Deemed Voucher Rule Amount, and it refers to a specific rule that calculates the fair market value of medical services exchanged for a voucher or coupon under an HSA plan.

When a voucher or coupon is used under an HSA plan, the amount of the voucher is considered as the DVRA. This means that the fair market value of the medical services received through the voucher is calculated as if the voucher amount were paid in cash.

Understanding DVRA is essential for HSA account holders to accurately report their medical expenses and ensure compliance with IRS regulations. By knowing how DVRA works, individuals can make informed decisions when using vouchers or coupons for medical services within their HSA plan.

While many folks are getting familiar with HSAs (Health Savings Accounts) and how they offer a tax-free way to save for medical expenses, there's another important term you might not know: DVRA (Deemed Voucher Rule Amount). This rule plays a crucial role in how the value of medical services received through vouchers or coupons is calculated.