Health Reimbursement Arrangements (HRAs)
Promoting health and maximizing savings
HRAs are tax-advantaged, employer-funded accounts that reimburse employees and retirees for qualified medical expenses — including out-of-pocket costs and premiums like Medicare Part B or individual market coverage.
Types of HRAs
Employers can choose from four HRA models, each with unique rules and use cases:
Standard HRA — Pairs with group health plans to cover eligible expenses
Qualified Small Employer HRA (QSEHRA) — Designed for small businesses without group coverage
Individual Coverage HRA (ICHRA) — Reimburses premiums for individual health insurance
Excepted Benefit HRA (EBHRA) — Covers limited benefits like dental, vision, or short-term plans
Why offer HRAs?
Tax-free reimbursements — Employer contributions and reimbursements are tax-free for both parties.
Custom plan design — Tailor coverage, contribution limits, and eligible expenses to fit your workforce.
Broad reimbursement options — Cover premiums, deductibles, co-pays, prescriptions, and more.
Funding flexibility — Use trust accounts, Voluntary Employees’ Beneficiary Associations, or other funding vehicles.
Talent retention — Enhance your benefits package to boost satisfaction and loyalty.
HRAs empower employers to offer cost-effective, customizable health benefits that support employee wellbeing and long-term financial health.
