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The Health Reimbursement Account

The HRA accomplishes two main goals:

  1. It saves the employer money. The HRA is handled as an unfunded promise to pay. The only time funds are deposited into the account are when claims are actually made.
  2. It turns the employee into a healthcare consumer. When the employee has a fixed amount of dollars to work with, he will budget and limit his expenses to stay within his annual allotment while still having the enhanced ability to see the doctor of his choice.