What is a Health Reimbursement Account (HRA)?

A Health Reimbursement Account (HRA) is an employer-funded plan that reimburses employees for qualified medical expenses not covered by their health insurance. HRAs are designed to help employees pay for out-of-pocket medical costs such as deductibles, co-pays, prescriptions, and other health-related expenses. The employer sets the contribution amount, and the funds are typically not taxable to the employee. HRAs are not portable, meaning the funds cannot be taken with the employee if they leave the company. Unused funds may or may not roll over from year to year, depending on the employer’s plan rules.