Health Reimbursement Account - HRA
 |
Definition of 'Health Reimbursement Account - HRA'Employer-funded plans that reimburse employees for incurred medical expenses that are not covered by the company's standard insurance plan. Because the employer funds the plan, any distributions are considered tax deductible (to the employer). Reimbursement dollars received by the employee are generally tax free.The downside to HRAs is that companies may choose whether to start or fund such a plan. Also, if a plan has already been established, the employer has the right to cancel it at virtually any time. |
 |
Investopedia explains 'Health Reimbursement Account - HRA'As a benefit, an employee may be reimbursed for qualified medical expenses from his or her employer. The funds received are tax-free, but because the plan is employer funded, the employer has the right to cancel or alter the distributions at any time. In spite of this, many employees consider HRAs as a valuable benefit given the rising cost of health care. |
Related Definitions
Articles Of Interest
-
How To Avoid Medical Debt
Find out what you can do to avoid a financial meltdown when there's a medical emergency. -
What Does Medicare Cover?
Don't assume you're insured. Find out what you can expect from this healthcare program. -
10 Sources Of Nontaxable Income
Taxes are often a deterrent from investing and saving. These financial practices will bring you no tax grief. -
Fighting The High Costs Of Healthcare
If your employer is cutting medical benefits, a health savings account may be right for you. -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being. -
Lessons On Corporate Dividend Payout And Retention Ratio
Why are dividend payout and retention ratios important to consider when investing in company stock? What companies have high ratios?What constitutes a high dividend payout and retention ratio? ... -
Conglomerates: Cash Cows Or Corporate Chaos?
Huge companies may not be as infallible as previously assumed. Find out why bigger isn't always better. -
Cashing In On Corporate Restructuring
Companies use M&As and spinoffs to boost profits - learn how you can do the same. -
The Causes And Costs Of Absenteeism
Playing hooky to play golf may feel harmless, but the accumulated effect of absenteeism hurts businesses' bottom line. This article looks at the causes of absenteeism, the costs of lost productivity ... -
A Peek Into Shareholder Meetings
Shareholder meetings can be glamorous, exciting or controversial, but not particularly revelational. Here's a quick look at what to expect.
Free Annual Reports