Health Reimbursement Arrangements (HRA) are tax-free employer funded accounts that help employees pay for their out-of-pocket medical expenses. Unlike an HSA, an HRA can be paired with any type of health plan and can be individually designed to meet an employer’s specific needs. HRAs are a great choice for
employers who want the flexibility to customize their benefit plan and help employees pay for out-of-pocket expenses that are not covered by insurance.

Types of HRAs

Standard

Standard HRAs have been around for many years and continue to be a popular choice for employers looking for full flexibility to maximize healthcare dollars. HRAs can be designed to help employees offset their deductible, coinsurance, copayment and other out-of-pocket costs. Unlike other types of HRAs, the standard HRA is not subject to any IRS annual limits but must be integrated with a group health plan.

QSEHRA

A Qualified Small Employer HRA is available for employers with less than 50 employees who do not offer a group health plan. QSEHRA funds can be used to pay for individual health insurance premiums purchased by employees and other IRS approved eligible medical expenses.

Annual IRS limits apply to this type of HRA.

ICHRA

Created in 2019, an Individual Coverage HRA allows employer dollars to be used by employees to pay for individual health insurance premiums and other IRS eligible medical expenses.

ICHRAs can also be designed to meet an employer’s ACA
obligations and there are no maximum IRS limits for this
type of HRA.

EBHRA

Created in 2019, an Excepted Benefit HRA pays for only specific approved benefits such as vision or dental expenses. An EBHRA is subject to specific IRS annual limits.

Annual IRS limits apply to this type of HRA.

IRS Annual HRA Limits:

Qualified Small Employer Health Reimbursement
Arrangement (QSEHRA)

2022

2023

Individual Coverage

$5,450

$5,850

Family Coverage

$11,050

$11,800

Excepted Benefit Health Reimbursement Arrangement (EBHRA)

2022

2023

Annual Limit

$1,800

$1,950

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Lorem Ipsum is simply dummy text of the printing and typesetting industry.?

We’re a global consultancy that helps the world’s most ambitious change makers define the future. Across 59 offices in 37 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition and redefine industries.

Lorem Ipsum is simply dummy text of the printing and typesetting industry.?

We’re a global consultancy that helps the world’s most ambitious change makers define the future. Across 59 offices in 37 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition and redefine industries.