Health reimbursement arrangement (HRA)

An HRA is a kind of account that is set up and paid for by your employer. When you have an HRA, your employer reimburses you for certain medical expenses that you pay for out of pocket. Examples include copays, eyeglasses, and dental work. This money is provided tax-free, meaning that you do not pay taxes on it. If you don't use the entire amount, your employer may or may not allow you to carry over the remaining funds to use the following year.  Unlike a Health Savings Account, when you leave your job, your employer keeps the money in your HRA.

WebMD Medical Reference Reviewed by Sarah Goodell on June 21, 2021
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