A Health Reimbursement Account (HRA) is an employer-funded account that helps employees pay for qualified medical expenses. Employers set aside a specific amount of money each year, which employees can use for costs like deductibles, copayments, and other out-of-pocket healthcare expenses. HRAs are not taxable to employees, making them a beneficial option for managing healthcare costs.
Employees can submit claims for reimbursement from their HRA, and the funds can roll over from year to year, depending on the employer's plan. HRAs are often paired with other health plans, such as Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), to provide comprehensive healthcare coverage.