Health Reimbursement Arrangements

What are Health Reimbursement Arrangements?


Health Reimbursement Arrangements (HRAs) are a flexible, tax-advantaged tool that allows employers to reimburse employees for qualified healthcare expenses, including premiums, out-of-pocket costs, and other medical-related services. Unlike traditional group health plans, HRAs give employers more control over healthcare spending while providing employees with the freedom to choose the plans and providers that best fit their individual needs. These arrangements are fully funded by the employer and can be customized in terms of eligibility, contribution amounts, and covered expenses. HRAs are especially attractive to small and mid-sized businesses seeking to offer meaningful health benefits without the complexity or high cost of traditional insurance. By helping employees offset medical expenses in a flexible and cost-effective way, HRAs enhance overall benefit offerings and contribute to greater financial wellness and satisfaction in the workplace.

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Health Reimbursement Arrangements (HRAs)

IC-HRA 

Individual Coverage Health Reimbursement Arrangements (IC-HRAs) allow employers of any size to reimburse employees tax-free for health insurance premiums and qualified medical expenses, giving teams more flexibility and choice in their coverage.

QSE-HRA

A Qualified Small Employer Health Reimbursement Arrangement (QSE-HRA) lets small businesses reimburse employees tax-free for individual health insurance premiums and medical expenses—without offering a traditional group plan.