Health Reimbursement Accounts
Health Reimbursement Accounts, or HRAs, are special IRS-sanctioned programs allowing employers to reimburse participating employees for qualified medical expenses. These arrangements ease the financial burden of health care by allowing pre-tax dollars to be applied towards out of pocket expenditures. An additional benefit is the flexibility to couple HRAs with a variety of different health plans. While the employer makes contributions to the account on behalf of the employees, any remaining funds at the end of the plan year remain with the employer.