An employer-funded plan that reimburses employees for qualified medical expenses.
An HRA is an employer-only-funded plan that reimburses employees for qualified medical expenses tax-free. Unlike FSAs, employees don't contribute — the employer sets aside funds and reimburses claims. Unlike HSAs, funds don't go into a separate account owned by the employee — they remain employer money until used.
Recent HRA variants include the QSEHRA (for small employers without group health) and the ICHRA (Individual Coverage HRA, which can be used with individual-market coverage instead of group coverage). These give small employers benefits-comparable options without traditional group health.
An employer-funded plan that reimburses employees for qualified medical expenses.
An HRA is an employer-only-funded plan that reimburses employees for qualified medical expenses tax-free.
Most PEO buying decisions touch several related concepts at once. Health Reimbursement Arrangement (HRA) typically comes up alongside the other terms in this category. Closely related terms include Group health insurance, Health Savings Account (HSA), Flexible Spending Account (FSA).
This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.
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