What is the primary function of a Healthcare Reimbursement Account (HRA)?

The primary function of a Healthcare Reimbursement Account (HRA) is to reimburse employees for medical expenses that are not covered by standard insurance. HRAs are employer-funded benefit plans that allow workers to receive tax-free reimbursements for out-of-pocket medical costs, such as copayments, deductibles, and other eligible healthcare expenses. This feature helps employees manage their healthcare costs more effectively and incentivizes them to seek necessary medical care without added financial burden.

While some choices mention aspects related to healthcare accounts, they do not accurately reflect the specific purpose of an HRA. For instance, funding health insurance independent of employer contributions does not align with the HRA's structure, as HRAs are typically employer-sponsored. Serving as a personal savings account for future medical costs is more characteristic of Health Savings Accounts (HSAs), which are designed to allow individuals to set aside money for future healthcare expenses, and do not involve reimbursements. Lastly, providing direct payments to healthcare providers is more typical of prepaid healthcare plans or insurance benefits rather than an HRA's reimbursement mechanism. Thus, the focus on reimbursing employees for uncovered medical expenses distinctly identifies the correct answer.