Health Reimbursement Accounts or Health Reimbursement Arrangements


what is an HRA?

Commonly referred to as a Health Reimbursement Account, is an IRS approved, employer-funded, tax-advantaged employer health benefit plan that reimburses employees for out-of-pocket medical expenses and individual health insurance premiums.




HRAs are required to pay the Patient-Centered Outcomes Research Institute (PCORI) fee by July 31.

The Fee is based on the average number of lives covered under the employer’s HRA plan and must be reported on the second quarter Form 720

What is the PCORI fee?

The Affordable Care Act imposes a fee on certain health insurance policies and self-insured health plans.  Per IRS regulations, HRAs are considered a self-funded health insurance plan.

How does this impact employers?

Any employer who sponsors a HRA is subject to the PCORI fee and need to file a tax form 720 and pay the associated fees to the IRS by July 31 each year.


You can request a PCORI report for your group by emailing