What is a Health Reimbursement Arrangement (HRA)?

What is a Health Reimbursement Arrangement (HRA)?

A Health Reimbursement Arrangement (HRA) allows your employer to give you additional money on a pre-tax basis to help you pay for out of pocket medical expenses. Unlike an FSA or HSA, an HRA is strictly funded by your employer; you may not contribute as well. HRAs can be used for a variety of eligible medical expenses, as defined by your particular plan. Since each HRA may vary greatly in eligible expenses, its best to check with your HRA administrator to determine which expenses are eligible under your plan. Often times, an HRA can be used on over-the-counter medical items, in which case, you may use your HRA for any FSA eligible item as well.

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