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Health Reimbursement Accounts (HRAs) are a way for employers to help offset their employees’ health care costs for eligible expenses and gain tax advantages.
With an HRA, employers contribute money for each employee to pay for eligible out-of-pocket medical costs. Employers can choose whether to allow the funds to be used for all qualified medical expenses approved by the IRS or a subset of eligible qualified expenses.
When employees incur eligible qualified medical expenses, they can submit claims to be reimbursed from the HRA.
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