HRA stands for Health Reimbursement Arrangement, though many people also call it a Health Reimbursement Account. An HRA is a way for employers with less than 50 full time equivalent employees to legally give money to their employees to be used to pay for individual health insurance plans. As an employer, you would fund and manage the HRA.
Some HRAs also have contribution limits, just like FSAs and HSAs. HRAs for small businesses are new starting in 2017, and they require documentation to setup and manage compliantly. It’s always best to consult your CPA and Broker to learn more about HRA regulations if you are interested in offering them at your business.Updated October 16, 2017
This article provides general information and shouldn’t be construed as legal, benefits, or HR advice. Benefits and insurance regulations may change over time and may vary by location and employer size. So, please consult a licensed broker or appropriately certified expert for advice specific to your business’s benefits options.