Health reimbursement arrangements give employers more control.

Reimburse the medical expenses of your employees with a health reimbursement arrangement.

Reimburse employee health expenses on your own terms.

A health reimbursement arrangement, or HRA, is a type of plan where an employer can reimburse qualified medical expenses incurred by employees. The employer would decide who is eligible, how much they qualify for, and what expenses are reimbursable. They could choose to let unused funds roll over into a new year or not. Because it’s an employer-owned account, the employee would not be able to take it with them should they leave the company.

Individual Coverage HRA (ICHRA)

ICHRA is available to employers of all sizes and supports multi-state workforces. Employers can define contribution amounts by employee class while maintaining predictable costs.

Employees select individual health insurance plans that best meet their needs, often with access to carrier networks in their local market.

Qualified Small Employer HRA (QSEHRA)

QSEHRA is designed for small employers with fewer than fifty full-time equivalent employees that do not offer a group health plan. Employer contributions are capped annually and reimburse employees for qualified medical expenses and individual health insurance.

Benefits of HRA-Based Solutions

YourMedPlan provides education and ongoing support throughout the policy year to both employers and employees to ensure these programs are implemented correctly and effectively.

  What makes health reimbursement accounts unique?

They are owned by the employee, who can reimburse qualified healthcare costs to eligible employees. This allows employers to essentially self-insure and potentially save.

  What can be covered by a health reimbursement account?

Medical expenses that are necessary, including annual check-ups, prescription drug costs, transportation costs, birth control pills, and more, depending on the specifics of the plan.

Health Reimbursement Arrangement: Frequently Asked Questions

What are the key differences between an ICHRA and a QSEHRA for employers?

The main differences are eligibility and flexibility: ICHRAs can be offered by employers of any size and allow different reimbursement levels by employee class, while QSEHRAs are only for small employers with fewer than 50 full-time equivalent employees and have annual IRS-set reimbursement limits and uniform contribution requirements.

Can HRAs work alongside a traditional group health plan?

An employer may offer a traditional group health plan to one employee class and ICHRA to another class, but cannot offer both options to the same class of employees. If an employer offers a Qualified Small Employer HRA (QSEHRA), they cannot also offer a group health insurance plan at the same time.

Do employees need to buy individual health insurance to use an HRA?

For ICHRA, employees must have individual health insurance to use the reimbursements; QSEHRA reimbursements apply to employees with minimum essential coverage.

How do ICHRA and QSEHRA differ in contribution limits?

ICHRA has no statutory contribution cap and allows employers to set reimbursement levels, while QSEHRA is subject to IRS-set annual reimbursement limits.

Who can offer a QSEHRA?

A Qualified Small Employer HRA (QSEHRA) is available to employers with fewer than 50 full-time employees that do not sponsor a traditional group health plan.