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Health Reimbursement Account (HRAs)
Health Reimbursement Account (HRAs)

Definition of HRAs

Updated over a week ago

Health Reimbursement Accounts or Health Reimbursement Arrangements (HRAs) are wholly employer-owned accounts and are generally administered by the employer on a "pay-as-you-go" basis. Bookkeeping entries or accounts are established and maintained by employers on behalf of each covered employee for the purpose of paying for unreimbursed medical expenses. 

Often employers will allow you to roll over the money remaining in your HRA at the end of the year to your HRA for the next year. However, if you leave your employer, your account generally cannot be taken with you and you may not have future access to the remaining balance. With the Tax Relief and Health Care Act of 2006, employers may transfer HRA balances to open HSAs. Individuals may not execute a transfer on their own.

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