When it comes to health insurance, it’s essential to know what each plan covers.
Thatch delves into the nuances of Health Reimbursement Arrangements, or HRAs, Qualified Small Employer Health Reimbursement Arrangements, or QSEHRAs, and Individual Coverage Health Reimbursement Arrangements, or ICHRAs, highlighting their differences in eligible expenses and how they can empower employees in managing their health care.
Key Takeaways:
- HRAs, QSEHRAs, and ICHRAs offer tax-advantaged reimbursement for medical expenses, each with specific eligibility criteria.
- QSEHRAs are designed for small businesses, covering a broader range of expenses, including individual health insurance premiums.
- ICHRAs provide flexibility for businesses of all sizes, allowing employees to choose their health insurance plans while reimbursing premiums and qualified medical expenses.
Health Reimbursement Arrangements (HRAs)
A Health Reimbursement Account is a benefit set up by an employer to help employees cover qualifying health expenses. Reimbursements under an HRA are tax-free for both the employee and employer. These defined health contribution plans have …