Health Reimbursement Accounts (HRAs) are rapidly becoming the foundation for many consumer-driven health plans. Incorporating the benefits of both Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs), HRAs combine the control and cost-saving tools that employers are seeking with the flexibility and protection that their employees need.
How it Works
With an HRA, employers fund individual reimbursement accounts for their employees and define what those funds can be used for (e.g. specified out-of-pocket expenses such as deductibles and co-pays). HRAs help employers save money by migrating from first-dollar coverage to a high-deductible health plan without having to increase their employees’ out-of-pocket exposure.