Health Reimbursement Accounts are designed to give employees more choice and greater control over their healthcare coverage. HRAs are funded by the employer, and used by employees on a pre-tax basis to pay for eligible medical expenses.
Unlike Health Savings Accounts, Health Reimbursement Accounts are only funded by the employer. Unused dollars stay with the employeer, and money does not follow the employee to other jobs. This offers are power retentional tool as employees are encouraged to stick around as to not loose their accumuldated HRA balance.
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