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When Should I Offer My Client a Health Reimbursement Arrangment (HRA)?

Written by: PeopleKeep Team
July 8, 2010 at 9:08 AM

Health Reimbursement Arrangements (HRAs) make the most sense for employers who want to provide employee health benefits but have been priced out of traditional group plans.

The best time to offer an HRA is when your client is unable to afford an annual rate increase on a group health insurance plan.

HRAs are 100 percent employer-funded and controlled, and there is no maximum or minimum amount employers may contribute.  Generally, employees cannot take unspent HRA funds with them when they changes jobs.

In addition, HRAs allow reimbursement of an employee's individual insurance premiums, making them a capable alternative to group health insurance plans for many businesses.


Topics: Health Reimbursement Arrangement, HRA Compliance

Additional Resources

Trying to decide which HRA is best for you? Take our quiz to find out.
Get our guide on how to offer health benefits with a small budget.