A Health Reimbursement Account (HRA) gives you the opportunity to manage your health care expenses in partnership with your employer. Designed to offset the cost of a high-deductible health plan, an HRA is an arrangement where your employer reimburses you for health expenses not covered by your health plan.

How It Works

Every year, your employer puts money aside in an HRA to help you pay for your medical expenses. You pay no taxes on the money, and you manage the account. Throughout the year, you can use the money in your HRA to pay for medical services and supplies that are not covered by your health plan and apply to your deductible.

If you use all of the money in your account, you pay the rest of your deductible out of your pocket. If you have unused money in your HRA at the end of the plan year, some plans allow you to apply the balance to the following year. Lastly, because the funds in your account are owned by your employer, if you leave the company, you typically will forfeit the money in your account.