Health Reimbursement Arrangements (HRAs)

Also known as health reimbursement accounts, HRAs permit businesses to offer pre-tax dollars to employees to help pay premiums and/or other out-of-pocket costs associated with medical care and services up to a maximum dollar amount for a coverage period. While an HRA may be offered with other employer-provided health plans, employees need not be covered under any other healthcare plan to participate. Employers own and fund the account for employees, and unused amounts may roll over to the next year.

Group coverage

Group medical coverage refers to a single policy issued to a group (typically a business with employees, although there are other kinds of groups that can get coverage) that covers all eligible employees and sometimes their dependents.


The total amount that must be paid in advance in order obtain coverage for a particular level of services. Usually health insurance premiums are billed and paid on a monthly basis.