Ace the 2025 CPB Certification Exam – Bill Your Way to Success!

Health Reimbursement Arrangement (HRA) is a specific type of employee benefit plan that employers use to reimburse employees for out-of-pocket medical expenses and, in some cases, health insurance premiums. The arrangement is funded solely by the employer, and the funds are not subject to taxation for the employee when they are used for qualified medical expenses.

HRAs are utilized as a way for employers to manage healthcare costs while providing employees with financial support for healthcare expenses. They can also be designed to help meet employees' healthcare needs by allowing them to roll over unused funds from one year to the next, depending on how the HRA is structured.

In contrast, the other options do not accurately reflect any established terms used in health insurance or reimbursement. For instance, "Health savings security account" is not a recognized term, and the other options do not relate to healthcare benefits in a meaningful way. Thus, understanding the role and meaning of HRAs is essential for those preparing for the Certified Professional Biller certification.