Who primarily funds a Health Reimbursement Account (HRA)?

A Health Reimbursement Account (HRA) is primarily funded by employers. This type of account is designed to reimburse employees for out-of-pocket health expenses and can be a component of an employer's benefits package. Employers make contributions to the HRA, which employees can then use to cover eligible medical expenses.

This structure allows companies to provide a valuable benefit while maintaining control over the amount contributed, which is established at the employer's discretion. Employees do not contribute directly to an HRA through payroll deductions, which distinguishes it from other types of accounts like Health Savings Accounts (HSAs), where employees might contribute. The primary goal of HRAs is to enhance employee healthcare coverage and assist with managing healthcare costs, further emphasizing the employer's role in funding these accounts.