Health reimbursement arrangement (HRA) offers reimbursement for employees in a company. The funds in the health reimbursement arrangement account are set aside by employers, unlike flexible health reimbursement arrangement (FHRA). The employer is responsible for setting up the health reimbursement arrangement account. Besides, the employer will decide the amount of money that is to be contributed to the account. As an employee, you are allowed to withdraw any amount of money to pay for expenses. The funds must be used to pay medical expenses that are covered in the account.

Most health reimbursement arrangements (HRA) accounts are offered in conjunction with high deductible health insurance plan. However, this does not mean that it cannot be offered with other types of health insurance plans. It can also be offered as a standalone account.
Under the federal law, employers have the rights to determine the portion of funds that can be rolled over each year. Employers have the rights to decide whether the balance in the account will be forfeited in the event that the employee resigns. If you are allowed to assess the account after resignation, you can use them to pay for your medical expenses until they are no more funds.

Employers often provide health reimbursement arrangements (HRA) for employees because they can deduct them as business expense. Health reimbursement arrangements (HRA) are available in small, medium and large companies. Health reimbursement account cannot follow the employee to the new employment place. It will remain with the original employer forever.