Insurance Glossary

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Insurance Term - Health Reimbursement Account (HRA)

It is a type of employer-provided health reimbursement arrangement, solely funded by the employer and not provided pursuant to salary reduction election or otherwise under a 125 cafeteria plan. It reimburses the employee for medical care expenses as defined by the 213 IRS code. These expenses can be incurred by the employee, the employee’s spouse and/or their dependants. It provides reimbursement to a maximum monetary amount in subsequent coverage periods. Employers have much flexibility with regard to the plan’s design.

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