Which of the following statements is true of the health reimbursement account (HRA)?
A)The entire health care cost of employees is reimbursed and deposited in a health reimbursement account by the employer.
B)The premium amount for the insurance policy of dependents is reimbursed and deposited in a health reimbursement account by employer.
C)The amount of unused money in the health reimbursement account can be rolled over annually.
D)The employer's contribution to the health reimbursement account is taxable.
E)The health reimbursement account balance is replenished by the insurance company when the account balance is used up.

Question

Quizplus · Accepted Answer

The statement that is true of the health reimbursement account (HRA) is that the amount of unused money in the health reimbursement account can be rolled over annually. This means that if an employee does not use up the entire balance of their HRA during the year, the remaining balance can be carried forward to the next year. The other statements are not true of the HRA. For instance, A is not true because not all health care costs are covered by the HRA, only those that are deemed eligible by the employer. B is not true because the HRA only reimburses the employee, not their dependents. D is not entirely true, as the employer's contribution to the HRA is generally tax-deductible. E is not true because the insurance company does not replenish the HRA balance, only the employer can do so.

Which of the Following Statements Is True of the Health