Published: June 23, 2026.
An HRA is a health reimbursement arrangement. Employers fund the account and reimburse employees for qualified medical expenses, including individual insurance premiums when the HRA type allows it.
Key Takeaways
- An HRA is a health reimbursement arrangement. Employers fund the account and reimburse employees for qualified medical expenses, including individual insurance premiums when the HRA type allows it.
- Traditional group HRAs pair with employer sponsored coverage. ICHRA and QSEHRA are ACA era arrangements that pair with individual Marketplace policies. The HRA type determines whether APTC is still available.
- When an employer HRA is integrated with a group plan, employees generally cannot receive APTC for Marketplace coverage instead. ICHRA has its own affordability test that may block APTC even without a group plan.
- Brokers advising small employers should compare QSEHRA, ICHRA, and small group ACA on total cost and employee choice, not premium alone.
Traditional group HRAs pair with employer sponsored coverage. ICHRA and QSEHRA are ACA era arrangements that pair with individual Marketplace policies. The HRA type determines whether APTC is still available.
When an employer HRA is integrated with a group plan, employees generally cannot receive APTC for Marketplace coverage instead. ICHRA has its own affordability test that may block APTC even without a group plan.
Brokers advising small employers should compare QSEHRA, ICHRA, and small group ACA on total cost and employee choice, not premium alone.
Related field notes
Related glossary terms
FAQ
Common broker questions about this term.
What is the difference between HRA and HSA?
An HRA is employer owned and employer funded. An HSA is employee owned and requires a qualifying high deductible health plan. They solve different problems.
Can employees contribute to an HRA?
No. Only the employer funds an HRA. Employees may pair an HSA with certain coverage types when plan design allows, but that is separate from HRA funding.
Does an HRA count as minimum essential coverage?
The HRA itself is not MEC. The underlying individual or group policy must provide MEC. Verify the enrolled plan type for each client.
