Health reimbursement account

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A '''Health Reimbursement Arrangement''', also known as a '''Health Reimbursement Account''' ('''HRA'''),<ref name="IRS969">{{Cite web |date=January 5, 2024 |title=Health Savings Accounts and Other Tax-Favored Health Plans |url=https://www.irs.gov/pub/irs-pdf/p969.pdf |publisher=Department of the Treasury Internal Revenue Service}}</ref> is a type of US employer-funded health benefit plan that reimburses employees for out-of-pocket medical expenses and, in limited cases, to pay for [[health insurance]] plan premiums.<ref name=":0">{{Cite report |url=http://www.healthaffairs.org/do/10.1377/forefront.20181026.832732/full/ |title=Administration Moves To Incentivize Health Reimbursement Arrangements |date=2018-10-26 |doi=10.1377/forefront.20181026.832732 |language=en |website=www.healthaffairs.org |year=2018|url-access=subscription }}</ref>

A '''Health Reimbursement Arrangement''', also known as a '''Health Reimbursement Account''' ('''HRA'''),<ref name="IRS969">{{Cite web |date=January 5, 2024 |title=Health Savings Accounts and Other Tax-Favored Health Plans |url=https://www.irs.gov/pub/irs-pdf/p969.pdf |publisher=Department of the Treasury Internal Revenue Service}}</ref> is a type of US employer-funded health benefit plan that reimburses employees for out-of-pocket medical expenses and, in limited cases, to pay for [[health insurance]] plan premiums.<ref name=":0">{{Cite report |url=http://www.healthaffairs.org/do/10.1377/forefront.20181026.832732/full/ |title=Administration Moves To Incentivize Health Reimbursement Arrangements |date=2018-10-26 |doi=10.1377/forefront.20181026.832732 |language=en |website=www.healthaffairs.org |url-access=subscription }}</ref>

An HRA is not truly an account, since it does not place funds under a separate [[legal title]]. Instead, it is an agreement under which the employee can submit qualified health expenses to the employer for reimbursement.<ref>{{Cite web |title=Health Reimbursement Arrangement (HRA) Guide |url=https://www.peoplekeep.com/health-reimbursement-arrangement-hra |access-date=2024-08-16 |website=www.peoplekeep.com |language=en}}</ref>

An HRA is not truly an account, since it does not place funds under a separate [[legal title]]. Instead, it is an agreement under which the employee can submit qualified health expenses to the employer for reimbursement.<ref>{{Cite web |title=Health Reimbursement Arrangement (HRA) Guide |url=https://www.peoplekeep.com/health-reimbursement-arrangement-hra |access-date=2024-08-16 |website=www.peoplekeep.com |language=en}}</ref>

Further, an ICHRA allows for applicable large employers (ALEs),<ref>{{Cite web|title=Employer Shared Responsibility Provisions {{!}} Internal Revenue Service|url=https://www.irs.gov/affordable-care-act/employers/employer-shared-responsibility-provisions|access-date=2020-08-11|website=www.irs.gov|language=en}}</ref> when the ICHRA is deemed affordable for minimum value coverage, to meet the PPACA employer mandates.<ref>{{Cite web|title=ICHRA {{!}} Individual Coverage HRA|url=https://www.gonewedge.com/ichra|access-date=2020-08-11|website=New Edge Solutions|language=en}}</ref>

Further, an ICHRA allows for applicable large employers (ALEs),<ref>{{Cite web|title=Employer Shared Responsibility Provisions {{!}} Internal Revenue Service|url=https://www.irs.gov/affordable-care-act/employers/employer-shared-responsibility-provisions|access-date=2020-08-11|website=www.irs.gov|language=en}}</ref> when the ICHRA is deemed affordable for minimum value coverage, to meet the PPACA employer mandates.<ref>{{Cite web|title=ICHRA {{!}} Individual Coverage HRA|url=https://www.gonewedge.com/ichra|access-date=2020-08-11|website=New Edge Solutions|language=en}}</ref>

Federal regulations currently prohibit employers from giving workers a choice between ICHRA benefits and group health insurance.<ref>{{Cite web |title=Put Employees in Control of Health Insurance with “Worker’s Choice ICHRA” |url=https://manhattan.institute/article/put-employees-in-control-of-health-insurance-with-workers-choice-ichra |access-date=2025-06-05 |website=Manhattan Institute |language=en}}</ref>

Federal regulations currently prohibit employers from giving workers a choice between ICHRA benefits and group health insurance.<ref>{{Cite web |title=Put Employees in Control of Health Insurance with “Worker's Choice ICHRA” |url=https://manhattan.institute/article/put-employees-in-control-of-health-insurance-with-workers-choice-ichra |access-date=2025-06-05 |website=Manhattan Institute |language=en}}</ref>

The HRA Council, a non-partisan advocacy group made up of health insurance leaders, brokers, administrators, and organizations, released its first ICHRA report in October 2022.<ref>{{cite web |title=Individual Coverage HRAs see triple digit growth, continue to expand access to care, new report shows |url=https://hracouncil.wildapricot.org/resources/Documents/2022_HRAC_Data_Report_NewsRelease.pdf |website=HRA Council 2022 Growth Trends for ICHRA & QSEHRA Report |publisher=HRA Council |access-date=24 October 2022}}</ref> Using data from BenefitBay, Flyte HCM, HealthSherpa, HRASimple, Nexben, OneBridge Benefits, PeopleKeep, Stride Health, TakeCommand, and zizzl health, the HRA council found ICHRAs saw a 350% growth in popularity from 2020 to 2022.

The HRA Council, a non-partisan advocacy group made up of health insurance leaders, brokers, administrators, and organizations, released its first ICHRA report in October 2022.<ref>{{cite web |title=Individual Coverage HRAs see triple digit growth, continue to expand access to care, new report shows |url=https://hracouncil.wildapricot.org/resources/Documents/2022_HRAC_Data_Report_NewsRelease.pdf |website=HRA Council 2022 Growth Trends for ICHRA & QSEHRA Report |publisher=HRA Council |access-date=24 October 2022}}</ref> Using data from BenefitBay, Flyte HCM, HealthSherpa, HRASimple, Nexben, OneBridge Benefits, PeopleKeep, Stride Health, TakeCommand, and zizzl health, the HRA council found ICHRAs saw a 350% growth in popularity from 2020 to 2022.