Health Reimbursement Arrangement (HRA)

A Health Reimbursement Arrangement (HRA) is an employer-funded account that helps employees pay for qualified medical expenses. The employer contributes money to the HRA, which employees can then use tax-free for things like doctor visits, prescriptions, or other healthcare costs. Unlike health savings accounts (HSAs), HRAs are solely funded by the employer and are not portable if you leave the company. They provide a flexible way for employers to assist employees with healthcare expenses while offering tax advantages for both parties.