Health Reimbursement Arrangements

Another medical reimbursement account is an employerprovided plan called the health reimbursement arrangement (HRA). With an HRA, the employer funds an account from which the employee is reimbursed for qualified medical expenses, such as copays, deductibles, vision care, prescriptions, premiums for medical and long-term care insurance, and some dental expenses. Reimbursements are not taxed to the employee and are deductible by the employer. The employee can carry forward any unused HRA account fund from year to year. Employees may request reimbursement for medical expenses at the time services are rendered, accumulate expenses for reimbursement in the future, or save funds in the HRA for retiree health benefits.