Which arrangement reimburses employees for medical expenses and is funded by the employer?

Prepare for the Business of Healthcare and Health Policy Test. Study with multiple choice questions and explanations to ace your exam!

Health Reimbursement Arrangement is designed for employers to fund and use to reimburse employees for qualified medical expenses. The defining feature is that the money comes from the employer rather than the employee, and employees are reimbursed for eligible costs from those funds. This set-up contrasts with HSAs, which are owned by the employee and can be funded by both the employee and the employer, with funds that typically stay with the employee and are portable. Flexible Spending Accounts can also be funded by the employer but usually involve employee salary reductions and have rules about how funds are used within a plan year. Health Maintenance Organizations are a type of managed care plan, not a reimbursement account.