Health Reimbursement Arrangement (HRA)

Employer funded group benefit plans which reimburse employees for medical expenses paid out of pocket which are not eligible for reimbursement by other insurance plans. Deductibles and payments towards health insurance premiums may be claimed, depending on the plan agreement. Employers set terms such as maximums, caps on amounts in the account and whether you are allowed to “rollover” unused funds. Payments to the employee’s are not considered taxable.