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What is a HRA (Health Reimbursement Account)?

An HRA is a health benefit where employers reimburse their employees’ medical bill. The amount that the employer contributes toward this plan is tax-deductible and the amount that will be reimbursed to the employee is also tax-free.

The employer decides if they want to roll over the fund that wasn’t used from the previous year. The employer may choose to cancel the HRA anytime.

HRAs are administered by a third-party health service provider.

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