What does HRA stand for?

• A. Healthcare Reimbursement Account
• B. Health Reimbursement Arrangement
• C. Health Risk Assessment
• D. Health Resources Allocation

Answer: (A)

HRA stands for Health Reimbursement Arrangement. It’s an employer-funded, tax-advantaged plan that reimburses employees for qualified medical expenses not covered by insurance. The employer funds the account, reimbursements to you are typically tax-free, and the plan is usually designed to pair with a high-deductible health plan. Unused funds and rules about rollovers or portability depend on the specific plan.

This differs from a Health Risk Assessment, which is a wellness screening used to evaluate an individual’s health risks rather than reimburse expenses. The term Healthcare Reimbursement Account is not the standard label used here in most benefits literature.