Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A health reimbursement arrangement (HRA) is best characterized by which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An HRA is funded solely by the employer, is owned by the employer, and reimburses employees for qualified out-of-pocket medical expenses. Unused amounts may carry over under the plan design, but the funds generally do not belong to the employee if employment ends, and the account is not portable. Employees cannot contribute their own money to an HRA. HRAs are one of the consumer-driven health plan models, along with HSAs, FSAs, and Archer MSAs.
Why the other options are wrong
- B) An employee-owned, portable account describes an HSA, which belongs to the individual and travels with them across jobs.
- C) The HSA requires a qualified HDHP and can be invested once balances grow; those are HSA features, not HRA features.
- D) HRAs are private employer-funded arrangements, not government accounts for Medicare premiums.
Memory hook
HRA = employer's money, employer's account, reimbursing your medical bills.