A Health Reimbursement Arrangement (HRA) is another health care account often used in consumer-driven health plans.

An HRA is a tax-advantaged account funded only by the employer for the benefit of the employee. Employees can use these funds to pay for certain eligible medical expenses. The employer determines what expenses are eligible and how much they will contribute to the employee’s account each year. Employers may offer other types of HRAs, like a limited-purpose HRA or a retiree reimbursement arrangement. Using employer contributions can help employees save money for other expenses.