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Compliance Overview: Comparing Different Types of HRAs

Health reimbursement arrangements (HRAs) are employer-funded accounts that reimburse employees for their eligible out-of-pocket
medical expenses on a tax-favored basis. Although HRAs provide significant tax benefits, they are subject to strict plan design rules. However, a final rule expands the use of HRAs, effective for plan years beginning on or after Jan. 1, 2020. Beginning in 2020, the different types of available HRA plan designs are:

  • HRAs integrated with group health plans (GHP-HRAs)
  • Individual coverage HRAs (ICHRAs) – effective for 2020
  • Excepted benefit HRAs (EBHRAs) – effective for 2020
  • Qualified small employer HRAs (QSEHRAs)
  • HRAs that only pay excepted benefits; and
  • Retiree-only HRAs

Read the Compliance Overview.

Contact your Cowden representative for more information on this or other compliance issues.