A health reimbursement arrangement (HRA) or health reimbursement account is an employer-funded tax-free account that employees can use to pay for qualified medical expenses that their health insurance does not cover up to a fixed dollar amount each year. Unused amounts may be rolled over for use in subsequent years. Unlike a health savings account (an HSA), the employer funds and owns the arrangement so that when a worker leaves a job, the fund reverts to the employer.
