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Health Reimbursement Account

A Health Reimbursement Account (HRA) is an employer-provided medical reimbursement account. By implementing an HRA with an employer sponsored health plan, employers and members enjoy savings through lower premiums and utilization. With an HRA, the employer funds an account from which the employee is reimbursed for qualified medical expenses. Only the employer can contribute to the HRA. Reimbursements from the HRA are not taxed to the employee, and are deductible by the employer.
HRAs provide plan design flexibility and each employer’s plan may be unique. Employees should reference their employer’s HRA Plan Documents in order to better understand their employer’s HRA plan design.