A Health Reimbursement Arrangement (HRA) allows employers to cover employees’ qualified medical expenses through a tax-advantaged reimbursement plan.
Flexible, Employer-Funded Coverage That Helps Your Team Stay Healthy and Protected
In today’s workplace, employees want benefits that feel personal, flexible, and easy to use. Health Reimbursement Arrangements (HRAs) offer exactly that, a smarter way for employers to support their team’s healthcare needs while keeping costs predictable. As medical expenses continue to rise, HRAs give companies a practical tool to help employees manage out-of-pocket costs without the complexity of traditional group insurance adjustments. For businesses looking to strengthen retention, boost job satisfaction and stay competitive, an HRA can be a powerful addition to their benefits package.
What Is a Health Reimbursement Arrangement (HRA)?
An HRA is an employer-funded benefit that helps employees pay for qualified medical expenses. Unlike a traditional insurance plan, an HRA is not an insurance policy; it is an employer-funded account. Employees can then use the allocated funds to reimburse themselves for eligible expenses such as deductibles, copays, prescriptions, and other healthcare costs.
HRAs are flexible, tax-advantaged, and easy to customize. Employers choose how much to contribute, what expenses are eligible, and how the arrangement works alongside existing health insurance. Because unused funds usually remain with the employer, HRAs offer cost control while still providing employees with meaningful financial support.
Benefits of Offering a Health Reimbursement Arrangement
Cost Control for Employers
HRAs allow businesses to set a fixed budget for healthcare reimbursements. There are no surprise premium increases or hidden fees, just a predictable, manageable benefit that supports long-term financial planning.
Meaningful Financial Relief for Employees
Healthcare costs can add up fast. HRAs help employees manage those expenses with employer-funded reimbursements, easing the financial stress of deductibles, medical bills, prescriptions, and more.
Tax Advantages for Both Sides
Employer contributions are tax-deductible, and employee reimbursements for eligible medical expenses are tax-free. This creates a win-win benefit that keeps dollars working efficiently.
Works Seamlessly with Existing Health Plans
Whether paired with a high-deductible health plan or offered alongside traditional coverage, HRAs add flexibility and support without complicating the employee experience.
Stronger Recruitment and Retention
In a job market, employees look for employers who invest in their well-being. An HRA signals that your company cares about health, stability, and long-term support.
Flexible Design Options
Businesses can customize contribution amounts, eligibility rules, and covered expenses to align with their overall benefits strategy. This adaptability makes HRAs suitable for companies of all sizes.
A Health Reimbursement Arrangement is more than a healthcare benefit—it’s a forward-thinking way to support employees while protecting your company’s budget. By offering flexible, tax-advantaged reimbursements, HRAs bring clarity, comfort, and control to today’s changing healthcare landscape. When employees feel supported, they stay healthier, happier, and more committed to your organization. That’s the true power of a well-designed group benefit.
