A Health Reimbursement Arrangement (HRA) is an employer-funded account that reimburses you for qualified medical expenses and, in some cases, health insurance premiums. Unlike FSAs and HSAs, HRAs are funded entirely by your employer — you cannot contribute your own money to one.
There are several types of HRAs:
If your employer offers an ICHRA, it may affect your eligibility for Marketplace subsidies. An ICHRA is considered affordable if the employee’s remaining premium cost (after the HRA contribution) is below a set percentage of household income — similar to the employer affordability test.
Yes, with an ICHRA or QSEHRA. These HRA types allow your employer to reimburse you for individual health insurance premiums, including Marketplace plans. However, if you receive a sufficient ICHRA contribution, you may not be eligible for a Marketplace Premium Tax Credit. A broker can help you evaluate whether the HRA offer or a subsidized Marketplace plan is more advantageous.
It depends on your employer’s plan design. Many HRAs do allow unused funds to roll over year to year, unlike FSAs. However, if you leave the employer, unused HRA funds are generally forfeited — the account belongs to your employer, not you.
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