Health Reimbursement Arrangement

A Health Reimbursement Arrangement (HRA) may enhance and provide benefits with a group health plan or instead of a group health plan. With several HRA types to choose from, one could work for you and your employees.


The Qualified Small Employer HRA is for employers with fewer than 50 employees that do not offer a group health plan including any other HRA or Health Flexible Spending account (FSA), Limited Health Care FSA and plans that only provide excepted benefits like dental, vision, etc. It allows you to reimburse employees who purchase individual (non-group) health insurance on the individual market, as well as eligible out-of-pocket medical, dental and vision benefits. You set the amount you are willing to provide for your employees up to the annual maximum allowed.

HRA Integrated with Group Health Plan

This HRA allows for employers to integrate an HRA benefit with an employer- sponsored group health plan and reduce or eliminate the employee’s out-of-pocket expenses associated with the group health plan.

Excepted Benefit HRA

The EBHRA only pays “excepted benefits” that are not integrated with health coverage, however the employer must offer a group health plan. This would include dental, vision and several types of supplemental insurance premiums, as well as any eligible medical expense related to those policies. The employer decides the amount of the benefit (up to the allowed maximum set by federal regulations), employee eligibility and types of expenses to reimburse in order to create the written plan documents.


Individual Coverage HRA allows employers to offer group health coverage or the ICHRA to reimburse for individual health insurance and/or out-of-pocket medical expenses, but they cannot offer employees in the same class a choice between the ICHRA and group health coverage. Employers can set up to 11 classes of employees.

For any of the above HRA options, you must have a written plan in place that will comply with government regulations. This would include a summary plan description that must be distributed to all employees eligible to participate prior to the start of every plan year.

For more information regarding any coverages listed on this site, email or call 800-944-7550. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice to your situation. Request of a quote for coverage does not guarantee that coverage can be provided. Any misstatements or omissions of relevant information from a client can result in a price variation or even declination or rescission of coverage.