CPB Certified Professional Biller Certification Practice Exam

What does the abbreviation HRA stand for?

1. Health Resource Association

2. Health Reimbursement Arrangement

3. Health Risk Assessment

4. Health Research Agency

The correct answer is: Health Reimbursement Arrangement

The abbreviation HRA stands for Health Reimbursement Arrangement. This term refers to a type of employee benefit plan used by employers to reimburse employees for incurred medical expenses and, in some cases, to fund health insurance premiums. The arrangement is funded solely by the employer and allows for tax-free reimbursements to employees for out-of-pocket medical costs, which can be beneficial in promoting employee health participation and reducing overall healthcare expenditures. Health Risk Assessment, while also a common term in the healthcare setting, relates more to evaluations that determine a person's risk of developing health issues rather than serving as a financial or reimbursement structure. The other options, such as Health Resource Association and Health Research Agency, do not represent standard industry terms related to employee health benefits and reimbursement arrangements. Therefore, Health Reimbursement Arrangement is the most accurate and relevant answer regarding the abbreviation HRA.