Your monthly allowance is the amount your employer contributes each month toward your health insurance costs or eligible medical expenses, and it directly affects how much you pay out-of-pocket when selecting a health plan in HRA Hub.
What is a monthly allowance?
A monthly allowance is a fixed dollar amount your employer provides through your HRA each month.
It can be used to:
Pay toward your monthly health insurance premium
Offset eligible medical expenses (depending on your HRA design)
Reduce your out-of-pocket cost when selecting a health plan
Your allowance is defined by your employer and may vary based on factors like role, location, or family size.
How does my monthly allowance affect plan shopping?
Your monthly allowance is applied during plan shopping to help determine affordability.
When comparing plans, the allowance:
Reduces your effective monthly premium cost
Helps determine which plans are most affordable for you
May result in “$0 cost after allowance” for certain plans
Updates dynamically based on your household and plan selections
The system uses your allowance to show what you would actually pay each month after employer contributions.The enrollment portal displays the full premium charged by the insurer, while your net cost is calculated after reimbursement is applied.
How is my monthly allowance calculated?
Your employer determines your allowance based on their HRA design.x
It may be based on:
Employee-only vs. family coverage
Location or regional cost differences
Job role or employee class (for ICHRA plans)
Coverage tier (individual vs. family enrollment)
Take Command does not set or change allowance amounts.
Can my monthly allowance change?
Yes, but only if your employer updates it.
Your allowance may change when:
Your employer updates plan design
You change employee class or eligibility group
You experience a qualifying life event that changes household size
Your HRA renewal or plan year resets
Changes are applied at the employer level, not by the employee.
What happens if my allowance is more than my premium?
If your allowance exceeds your monthly premium:
The excess may be available for other eligible medical expenses (if your HRA allows it)
You may have a $0 premium responsibility for that month
Remaining allowance may roll over depending on plan rules- Reimbursement is only for the premium amount paid, not the full allowance, if the premium is less than the allowance.
Not all HRAs allow unused funds to be used for non-premium expenses.
What happens if my premium is higher than my allowance?
If your premium is higher than your allowance:
You are responsible for paying the difference out-of-pocket
The system will display your “net cost” after allowance
You can still choose the plan if it meets your needs- For example, if your premium is $888.52 and your allowance is $831.54, the $56.98 difference will need to be paid out-of-pocket.
This difference is often shown as your “monthly cost after allowance.”Payments for the out-of-pocket difference should always be sent directly to your insurance carrier, not to Take Command.
Resolving Billing Discrepancies
If you notice discrepancies, such as being charged a premium before your plan’s start date, verify the payment details in your insurance carrier’s member portal and enrollment confirmation emails. Contact the carrier directly to request corrections or refunds. For overlapping premiums (e.g., old and new claims), adjust the claim amount to avoid exceeding your allowance.
Does my allowance apply to all health expenses?
Not always. Depending on your HRA type:
ICHRA: typically applies to individual insurance premiums and sometimes other eligible expenses
QSEHRA: may apply to premiums and certain qualified medical expenses
Employer plan design determines what is eligible
Your allowance rules are defined by your employer’s HRA setup.
Do I receive the allowance directly?
What happens if I cancel my plan after paying the initial premium?
If you cancel your plan, the insurance carrier will issue a refund for the initial premium. Refund timelines vary by carrier.
No. Your monthly allowance:
Is not paid directly to you as cash
Is administered through Take Command
Is applied toward reimbursements or premium payments based on your HRA model
How funds are used depends on whether your employer uses AutoPay or reimbursement-based setup.To receive reimbursement, you must submit proof of payment to Take Command. Reimbursements are processed based on the amount paid, not the full allowance if your premium is lower. Additionally, if your employer offers AutoPay, you can set it up through your insurance carrier using the ACH banking details provided in your HRA Hub portal.
Where do I see my monthly allowance?
You can view your allowance in HRA Hub under:
My Info
Plan shopping summary
Plan selection or affordability screen
It will be shown alongside your estimated monthly premium costs.### Why might the 2026 calendar be unavailable for premium submissions? This could occur if your HRA is inactive for 2026, you are ineligible for the dates in question, or your allowance has been exhausted. Check your account details to confirm.