Health Reimbursement Arrangement (HRA)

A Health Reimbursement Arrangement (also known as an HRA or Health Reimbursement Plan) is an employer-funded health benefit that reimburses employees for out-of-pocket medical expenses.

If you’re interested in offering an HRA to your team, we recommend Take Command Health because they offer policy flexibility and a focus in HRA administration. To learn more about Take Command Health, follow this referral link to set up a new HRA or speak with an expert.

Take Command offers QSEHRA and ICHRA administration. QSEHRA and ICHRA benefits cannot be offered alongside small-group health insurance, including small-group health insurance offered through Gusto. 

Once your HRA begins, you can set up tax-free payroll reimbursements for enrolled employees.

Tax implications

Small businesses may provide these types of reimbursement arrangements without violating ACA mandates, but situations vary and you should consult a licensed professional or tax consultant before taking this route.