Health Reimbursement Account (HRA)

An employer-funded, tax-free account that reimburses employees for qualified medical care expenses, which are typically combined with a high deductible health plan. The employer determines whether to allow employees to roll over unused funds from year to year, and whether to allow terminated employees to spend their unused balances. The account belongs to the employer and the employer has no legal obligation to transfer the funds from the account to the employer.


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