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Comparing Different Types of HRAs

Health reimbursement arrangements are employer-funded accounts that reimburse employees for their eligible out-of-pocket medical expenses on a tax-favored basis. This allows employees to enjoy significant tax benefits while covering their healthcare expenses. Although HRAs provide significant tax benefits, they are subject to strict plan design rules.

The different types of available HRA plan designs are:

  • HRAs integrated with group health plans;
  • Individual coverage HRAs;
  • Excepted benefit HRAs;
  • Qualified small employer HRAs;
  • HRAs that only pay excepted benefits; and
  • Retiree-only HRAs.

For a complete overview and comparison of the types of HRAs, view our Compliance Overview.

For more information about employee benefits, our services and products, contact HANYS Benefit Services by email or call 800.388.1963.

This is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2023 Zywave, Inc. All rights reserved.

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