Health Reimbursement Arrangement (HRA)
A Health Reimbursement Account combines high deductible/low premium health insurance with a tax favored savings account funded solely by the employer.
The account is set up to help employees manage the increase in out-of-pocket healthcare expenses usually associated with a high deductible plan.
Money in the savings account can help pay for co-pays and other qualified expenses prior to the deductible being met. Money left in the savings account earns interest and can be carried to the next year.