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Health Insurance Glossary

Health reimbursement arrangement (HRA)

HRAs are individual accounts that a member's employer can establish to help pay for covered medical expenses. The employer, who is the sole contributor to the HRA, decides how much money to put in the HRA and what percentage of unused HRA funds can roll over from year to year. A member can withdraw HRA funds for medical expenses allowed under an employer's benefits plan. HRA funds belong to the employer and are not portable, which means they do not go with a member if the member changes jobs. HRA funds are not treated as taxable income.


 
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