Health Reimbursement Arrangements (HRA) and Unallocated Medical Reimbursement Plans (UMR)
HRA/UMR is a consumer directed, tax-free health care reimbursement arrangement established and funded by the employer. The employee uses the funds, tax-free, to pay for qualified out-of-pocket medical expenses that the employer deems eligible when setting up the plan.
ICHRA (Individual Coverage HRA) allows all businesses, regardless of size, to reimburse or facilitate payment on behalf of employees at a set level for their health insurance, as well as other qualified health care expenses. ICHRAs are also tax-advantaged, exempt from both payroll taxes and income taxes.
QSEHRA (Qualified Small Employer HRA) allows an employer to offer health care coverage at a small company (50 or fewer full-time employees) replacing a group health plan with a maximum yearly limit set by the IRS
EBHRA (Excepted Benefits HRA) allows an employer to offer accounts to compliment a group insurance plan to cover dental, vision care, long-term care, COBRA premiums, or other non –primary care costs up to the maximum amount set by the IRS.