What is a Health Reimbursement Account (HRA) medical program?
An HRA is a high-deductible medical plan that allows the employer to fund part of the high deductible on an as used basis. This allows the employer to implement a health plan with a generally lower premium than a typical medical plan with in-network co-payments and low out-of-network deductibles and co-insurances. The employer does not pre-fund the HRA expenses so there is a cash flow savings. The employee and his/her dependents are protected from the high deductible and co-insurance out-of-pocket cost by having the employer partially fund this expense.
