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HRAs are employer-funded plans that reimburse employees for out-of-pocket medical expenses that are not covered by the company’s standard insurance plan. Your employer contributes to the HRA in a predetermined amount at the beginning of the plan year. For example, your plan may have a $1,250 deductible and the HRA could be set up so that the employee pays the first $625, and the remaining $625 of the deductible would be paid from the employer-funded HRA.
UPMC Health Plan, Inc.