Health Reimbursement Accounts, also called Health Reimbursement Arrangements (HRA’s) are employer funds available to reimburse employees for qualified medical expenses. The terms of these arrangements can provide first dollar medical coverage until the funds are exhausted. HRA’s are typically funded on an as needed basis meaning that no separate account is maintained by the employer and the availability of funds is dependent on the financial health of the company at the time a claim is made. The employer may cancel or amend a Health Reimbursement Account at any time.

Health Reimbursement Accounts are only funded by the employers and can be deducted as business expense when actual distributions are made. An employee may only qualify for funds from an HRA while employed by the employer and subject to the terms of the governing plan document.