The Center for Consumer Information & Insurance Oversight
Health Reimbursement Arrangements
Health reimbursement arrangements (HRAs) are a type of account-based health plan that employers can use to reimburse employees for their medical care expenses.
New rules released by the Departments of Labor, Health and Human Services, and the Treasury permit employers to offer a new “individual coverage HRA” as an alternative to traditional group health plan coverage, subject to certain conditions. Among other medical care expenses, individual coverage HRAs can be used to reimburse premiums for individual health insurance chosen by the employee, promoting employee and employer flexibility, while also maintaining the same tax-favored status for employer contributions towards a traditional group health plan.
The new rules also increase flexibility in employer-sponsored insurance by creating another, limited kind of HRA that can be offered in addition to a traditional group health plan. These “excepted benefit HRAs” permit employers to finance additional medical care (for example to help cover the cost of copays, deductibles, or other expenses not covered by the primary plan) even if the employee declines enrollment in the traditional group health plan.
- Health Reimbursement Arrangements and Other Account-Based Group Health Plans Proposed Rule
- Health Reimbursement Arrangements and Other Account-Based Group Health Plans Final Rule
- Individual Coverage HRA Model Attestations (DOCX) (PDF)
- Individual Coverage HRA Model Notice (DOCX) (PDF)
- Frequently Asked Questions (PDF)
- Fact Sheet
- Individual Coverage Health Reimbursement Arrangements: Pre-Open Enrollment Period Training, Fall 2019 (PDF)
- Employer Initiatives: This section provides information about employer-related programs administered by the CMS Center for Consumer Information & Insurance Oversight (CCIIO) and provides additional guidance and resources for employers.