The Health Reimbursement Arrangement is funded by the employer. You choose how to administer employee medical expense reimbursements. This type of plan can be used to pay part or all of the in-network deductible. HRA funds paid for employee claims are tax deductible for employers.
On all HRA plans, HRA payments for medical services are processed automatically and paid directly to the healthcare provider. On QHDHP HRA plans, prescription expenses applied to deductible can also be reimbursed: however, the employee must submit the claim to request payment.