Which statement best describes a Health Reimbursement Arrangement (HRA)?

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

Multiple Choice

Which statement best describes a Health Reimbursement Arrangement (HRA)?

Health Reimbursement Arrangements are employer-funded accounts set up to reimburse employees for qualified medical expenses. The key idea is that the money comes from the employer, not from the employee, and reimbursements are for medical costs that the plan covers. Reimbursable items typically include deductibles, copays, and coinsurance, and in some plans can include premiums for certain health coverage. That combination—employer-funded reimbursements for medical costs, including deductibles and copays, with premiums possible in some arrangements—best describes how an HRA works. Government subsidies don’t fund HRAs, and employee contributions to the HRA itself aren’t how these plans are typically structured.

Health Reimbursement Arrangements are employer-funded accounts set up to reimburse employees for qualified medical expenses. The key idea is that the money comes from the employer, not from the employee, and reimbursements are for medical costs that the plan covers. Reimbursable items typically include deductibles, copays, and coinsurance, and in some plans can include premiums for certain health coverage. That combination—employer-funded reimbursements for medical costs, including deductibles and copays, with premiums possible in some arrangements—best describes how an HRA works. Government subsidies don’t fund HRAs, and employee contributions to the HRA itself aren’t how these plans are typically structured.

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