Health Reimbursement Arrangements (HRA)
A Health Reimbursement Arrangement (HRA) is an employer-funded benefit that can be used to repay employees for uninsured medical expenses. How does it work? Your employer contributes tax-deductible money to the account, and you receive reimbursements tax-free. HRAs can reimburse for the same expenses as the Health Flexible Spending Account. However, unlike an FSA, unused HRA balances can be carried forward from year to year, depending on your employer's plan design. With an HRA, your employer may restrict reimbursements to specific expenses, such as prescription drug co-pays or deductible expenses.
There are several different kinds of HRAs available. Refer to your plan documents to find which one your employer offers.