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Barbara Weltman

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Are health reimbursement arrangements for you?

November 15, 2022 / By Barbara Weltman

Health reimbursement arrangements allow small businesses to pay a modest fixed amount toward health coverage so that employees can obtain on their own coverage (no employer-provided group health plan). According to the HRA Report, there’s been phenomenal growth in Qualified Small Employer HRAs (QSEHRAs), established in 2017, and Individual Coverage HRAs (ICHRA)s, established in 2020. HRAs are doubling on average in all states, with significant growth across all industries, types of employers and employee groups. There is a 92% adoption rate among companies with 20 or fewer employees. The average participation rates for employees offered an ICHRA or QSEHRA is 60%, comparable to industry standards for employer-sponsored group plans. #IdeaoftheDay

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