What Is a Health Reimbursement Arrangement?
A Health Reimbursement Arrangement (HRA) is a plan designed to help you manage the rising costs of health care by allowing you to pay for qualified medical expenses with money set aside in an account by your employer. Think of it as a personal account for medical expenses.
Your employer sets aside money on a pre-tax basis — this means as long as you use the money for eligible expenses, you won’t pay income taxes on it. Employers can choose what is qualified and may change from group to group.