Health Reimbursement Arrangement (HRA) business definition

An employer-sponsored and -funded health insurance plan that reimburses employees for qualified medical expenses, including health insurance premiums. These arrangements are preferred by many employers, who can limit their own cost of health care by establishing a limit on the contributions they will make for employees, who are forced to seek individual health insurance. Funds contributed to an HRA are the property of the employer, and unused contributions cannot be moved when an employee moves to a new employer.