The Health Reimbursement Arrangement is an employer-funded health benefit plan that reimburses employees for out-of-pocket medical expenses. The Health Reimbursement Arrangement is integrated with a qualified employer-sponsored group medical plan and employees are reimbursed for allowable health care services as defined by the plan.
HRAs have existed under the Internal Revenue Code 105 for many years. The plan can reimburse out-of-pocket expenses such as deductibles, coinsurance, co-pays, prescriptions and other allowable health care expenses as defined by your employer.
Please note that all HRA plans are not created equal. Please refer to your Summary Plan Description (SPD) for your plan’s specific allowable expenses.