Cost-Effective

Since you administer the HRA account, you as the employer choose how much you want to contribute for each employee each year.

An Alternative to Traditional Group Health Coverage

If you can’t offer traditional group health coverage or don’t want to take on potential risks of offering traditional group health insurance, certain types of HRAs — where you offer a fixed amount per month to employees — can give you more control over the funds you contribute. Plus, HRAs aren’t subject to annual rate hikes.

Tax Advantages

Employer contributions are tax-deductible, and reimbursements are tax-free when an employee files a claim.

No Participation Concerns

There’s no negative impact to your bottom line if employees decide not to use an HRA benefit.

Choose the Features That Make Sense for Your Business

Employers have flexibility when choosing the plan features that work best for their employees and budget.