HRA - Health Reimbursement Accounts or Health Reimbursement Arrangements are tax advantaged employer health plans that reimburse employees for out-of-pocket medical expenses. Although these plans are strictly governed by the Internal Revenue Service (IRS) employers control how and what can be reimbursed. As a result, HRAs are funded solely by the employer and cannot be funded by employee salary reductions. Recently, the IRS has ruled that HRA plans cannot fund premiums in an effort to keep employers from dumping employees into health insurance exchanges.