HRA Overview

Health Reimbursement Arrangements (HRAs) are an example of consumer-driven healthcare used to control health costs. Similar to Flexible Spending Account (FSAs), the HRA features a “personal account” under the control of the individual. 

HRAs are funded solely by the employer and permit unused amounts to be carried over from year to year (no “use it or lose it” as with FSAs). The IRS specifically prohibits the use of employee contributions to the HRA.