Health Reimbursement Account

Health Reimbursement Account

A structure in which an employer makes contributions to a special account that can be used to pay for participating employees' medical expenses not reimbursed by his/her ordinary health insurance. The employee may use funds in the account to make premium payments or to pay for unexpected expenses. The employee does not pay taxes on these benefits. A health reimbursement account helps reduce one's risk of being underinsured. See also: Health savings account.