Health Reimbursement Arrangements (HRAs) are primarily what type of plans?

Health Reimbursement Arrangements (HRAs) are primarily employer-funded group health plans because they are designed to allow employers to reimburse employees for qualified medical expenses tax-free. HRAs are funded solely by the employer, meaning employees do not contribute any funds to the account. This structure encourages employees to utilize healthcare services by providing them with a source of reimbursement for their out-of-pocket medical costs.

The employer sets the contribution limits and defines eligible expenses, allowing for a flexible design that can align with the employer's overall benefits strategy. This direct funding is a key characteristic that differentiates HRAs from other types of health plans that involve employee contributions or government funding.