CPB Certified Professional Biller Certification Practice Exam

What is the primary purpose of HCRA?

1. Health Care Reform Act

2. Healthcare Reimbursement Account

3. Health Care Resource Allocation

4. Healthcare Costs Reduction Act

The correct answer is: Healthcare Reimbursement Account

The primary purpose of a Healthcare Reimbursement Account (HCRA) is to provide a financial mechanism that allows individuals to pay for out-of-pocket medical expenses using pre-tax dollars. This type of account is designed to help manage healthcare costs more effectively by allowing employees to set aside a portion of their earnings before taxes to cover eligible medical expenses. An HCRA is beneficial as it can lead to significant tax savings, making healthcare more accessible for individuals and families. These accounts are typically funded through payroll deductions and can be used for a variety of qualified medical expenses, contributing to overall cost reduction in healthcare spending for both employees and employers. The other options, while related to healthcare in some capacity, do not accurately capture the primary function that HCRAs serve. The Health Care Reform Act generally refers to broader legislative efforts to improve health care systems, while the Health Care Resource Allocation deals with distributing medical resources. Lastly, the Healthcare Costs Reduction Act would imply a focus on reducing healthcare costs, but not specifically through the reimbursement model that HCRAs employ.