Health Reimbursement Arrangements (HRAs)

Health Reimbursement Arrangements (HRAs) are employer-funded accounts that employees can use to pay for qualifying medical expenses. Employers contribute a set amount each year, and employees can use these funds tax-free for healthcare costs like doctor visits, prescriptions, or dental care. Unused funds can often roll over to the next year, depending on the plan. HRAs provide flexibility and tax advantages, helping employees manage healthcare expenses more effectively while giving employers control over healthcare benefits costs. They are a valuable tool in modern employer-sponsored health benefits packages.