Health Reimbursement Arrangement (Health Care) Law & Legal Definition

A health reimbursement arrangement (HRA) is an employer-sponsored and funded health insurance plan to reimburse allowable medical expenses paid by participating employees. They are generally programs sanctioned by Internal Revenue Service (IRS) that provides tax advantages to offset health care costs.

In an HRA a member’s employer puts money into a fund, which the members can use to pay deductibles, coinsurance and other covered health care costs not covered by the company's standard insurance plan. Unused money will carry forwarded for use in the next plan year.