In health care, acronyms abound—ACA, FSA, FMLA, CDHP, HSA, etc. It can be a bit overwhelming.
One of the lesser known but still important healthcare-related acronyms is HRA. It stands for health reimbursement account (or health reimbursement arrangement), and it’s a type of account in which employers reimburse employees for qualified medical expenses.
HRAs are similar to flexible spending accounts (FSAs) in the sense that they are generally managed by the employer and are paid out after the expense is incurred by the employee. However, that’s where the similarities end.
