PSI Ohio Insurance Practice Exam 2025 – Complete Preparation Guide

Health Reimbursement Accounts (HRAs) are designed primarily to assist employees with the reimbursement of medical expenses. This means that they are used to offset costs that employees incur for healthcare, such as co-pays, deductibles, and other qualified medical expenses. Employers fund these accounts, and employees can use the money in their HRAs to reimburse themselves for eligible healthcare costs.

HRAs offer employees a means of managing their healthcare expenses in a tax-advantaged way, providing a significant benefit linked to their overall compensation and health insurance strategy. This is particularly important as healthcare costs can be a substantial burden, and HRAs are a valuable tool for companies to help support their employees’ financial wellness in relation to health care.

In contrast, the other options focus on areas not directly related to the primary function of HRAs, such as life insurance premiums, dental expenses alone, or long-term care insurance, which are not the main use case for these accounts. Understanding the specific function of HRAs helps clarify their role in employee benefits and underscores their significance in a comprehensive health care strategy.