Health Reimbursement Arrangement (HRA)

A Health Reimbursement Arrangement (HRA) is a type of employer-sponsored health plan that allows employees to set aside money from their paychecks before taxes to pay for qualified medical expenses. HRAs are funded by employers, and employees can use the money in their HRAs to pay for copays, deductibles, and other out-of-pocket medical expenses.

HRAs are similar to health savings accounts (HSAs), but there are a few key differences. First, HRAs are funded by employers, while HSAs are funded by employees. Second, HRAs can be used to pay for any qualified medical expense, while HSAs can only be used to pay for certain types of medical expenses. Third, HRAs have a maximum annual contribution limit, while HSAs do not.

HRAs can be a valuable tool for employees who want to save money on their health care costs. However, it is important to understand the rules and limitations of HRAs before you decide if one is right for you.

Here are some of the key things to know about HRAs:

* HRAs are offered by employers as a way to help employees pay for their health care costs.
* HRAs are funded by employers, and employees can use the money in their HRAs to pay for qualified medical expenses.
* HRAs have a maximum annual contribution limit, which is set by the IRS.
* HRAs can be used to pay for any qualified medical expense, including copays, deductibles, and other out-of-pocket expenses.
* HRAs are portable, which means that employees can take them with them if they change jobs.

If you are considering an HRA, it is important to talk to your employer about the plan's rules and limitations. You should also make sure that you understand how HRAs work before you decide if one is right for you.