Health Reimbursement Arrangement

Typically, an employer creates a notional (i.e., unfunded) arrangement for each participating employee and then reimburses the employee for substantiated, qualified healthcare expenses up to the employee’s HRA account balance. While note required, an HRA is usually offered in conjunction with a High Deductible medical plan which significantly lowers the insurance premium.  A portion of this premium savings is used to reimburse plan participants when unreimbursed qualified expenses are incurred.