Frequently Asked Questions

Eligibility depends on the HRA type and written plan terms. Group-integrated HRAs require qualifying group coverage; ICHRAs require qualifying individual insurance or Medicare. QSEHRAs are for eligible non-ALE employers that offer no group health plan, with minimum essential coverage needed for tax-free reimbursements. Excepted-benefit HRAs require an offer of traditional group coverage but not enrollment in it. Self-employed persons generally cannot participate. Sources: IRS Publication 969; CMS, Individual Coverage and Excepted Benefit HRA FAQs; HealthCare.gov, QSEHRA guidance.

It depends on the arrangement. Group-integrated HRAs supplement qualifying group coverage; ICHRA and QSEHRA follow different coverage and employer rules. An HSA-qualified HDHP alone does not make an HRA compatible with HSA contributions. General-purpose HRA coverage generally prevents contributions; certain limited-purpose, post-deductible or suspended designs may preserve eligibility. Confirm the combination and all other HSA eligibility requirements before employees contribute. Source: IRS Publication 969; CMS, Individual Coverage and Excepted Benefit HRA FAQs.

HRA cost has two parts: reimbursements the employer agrees to fund and fees for plan documents, administration and claims substantiation. Request an itemized proposal showing setup charges, recurring fees, minimum charges and what happens to unused allowances. The total depends on the arrangement, eligible employees and reimbursement use; some types have statutory annual limits. Compare administration separately from reimbursements rather than assuming every allowance will be spent.