Also known as a Health Reimbursement Arrangement, an HRA is an employer-bankrolled benefit to offset the cost of out-of-pocket medical expenses. An HRA, as with an HSA, is often coupled with a high-deductible health plan, the key difference between being the source of funding. Employers contribute to an HRA and employees to an HSA. Funds in an HRA roll over into the next year and can, for qualified medical expenses, be tax-free.