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Health Reimbursement Arrangements (HRAs)

This page features information on the following topics regarding Health Reimbursement Arrangements (HRAs):

  • Overview 
  • Benefits of an HRA 
  • Qualifying for an HRA 
  • Contributions to an HRA 
  • Distributions from an HRA 
  • HRAs and the Affordable Care Act 
    • Note: Federal law now allows eligible small employers to offer new "qualified small employer HRAs" (QSEHRAs) to reimburse employees for qualified medical expenses, including individual health insurance premiums. Click here for more information.
  • HRAs and COBRA 
  • HRAs and ERISA 
  • Additional Information 


A health reimbursement arrangement (HRA) is funded solely by an employer. The contribution cannot be paid through a voluntary salary reduction agreement on the part of an employee. Employees are reimbursed tax free for qualified medical expenses up to a maximum dollar amount for a coverage period. 

Benefits on an HRA

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