Health Reimbursement Arrangements

Health reimbursement arrangements are employer-funded accounts that are designed to reimburse employees for qualified medical expenses that are paid for out-of-pocket (deductibles, co-payments, doctors visits, prescription drugs, etc.)
Like an HSA, an HRA requires an employee to obtain a high deductible health plan. However the employer is solely responsible for funding an HRA and the HRA stays with the employer if an employee leaves.
Through an HRA, an employer sets aside a portion of funds to be used to reimburse employees for qualified medical expenses that are paid for out-of-pocket. Like an HSA, in an HRA all of the up-front medical costs are paid for by the employee, thereby encouraging an individual to be thoughtful with their health care spending. Once those services have been paid for, the employee submits a request to be reimbursed through the HRA.
HRAs are governed by Section 105 of the Internal Revenue Code, which allows health plan benefits used for medical care to be exempt from taxes, and Section 106 of the Code, which allows employer contributions to those plans to be tax-exempt.
There are no annual contribution limits on HRAs, however the employer usually sets the contribution below the annual deductible.
These funds can be carried over at the employer's discretion.

NFIB