Health Insurance Basics
What is a Health Reimbursement Arrangement (HRA)?
A Health Reimbursement Arrangement (HRA) is an employer-funded account that reimburses employees for qualified medical expenses and individual health insurance premiums. HRAs are funded entirely by the employer — employees do not contribute. The most common types are QSEHRA (for small employers) and ICHRA (for any size employer).
Key Points
- HRA: employer-funded account for medical expenses and health insurance premiums
- Funded entirely by employer — employees do not contribute
- QSEHRA: for small employers (fewer than 50 full-time employees)
- ICHRA: for any size employer
- Employees use HRA funds to pay for individual health insurance and medical expenses