Health Reimbursement Arrangements (HRA)

Health Reimbursement Arrangements (HRA)

A Flexible Health Benefit Strategy for Modern Employers

Health Reimbursement Arrangements (HRAs) allow employers to reimburse employees for qualified healthcare expenses on a tax-free basis.

Unlike traditional group health insurance, HRAs provide employers with greater flexibility and cost control.

Health Reimbursement Arrangements (HRAs) allow employers to reimburse employees for qualified healthcare expenses on a tax-free basis.

Unlike traditional group health insurance, HRAs provide employers with greater flexibility and cost control.

How HRAs Work

Employers set a reimbursement allowance that employees can use to cover healthcare expenses or insurance premiums.

Common HRA types include:

  • ICHRA (Individual Coverage HRA)

  • QSEHRA (Qualified Small Employer HRA)

  • Group Coverage HRA

HRAs are employer-funded benefits and reimburse employees only after expenses are incurred.

Advantages for Michigan Employers

HRAs allow employers to:

  • Control healthcare spending

  • Offer benefits to diverse employee classes

  • Reduce traditional group insurance costs

  • Provide tax-advantaged reimbursements

Many employers are now using HRAs as part of a defined contribution health strategy.

How Stearns HR Helps

Stearns HR specializes in designing compliant HRA solutions including:

  • ICHRA strategy and implementation

  • Compliance with ERISA and ACA regulations

  • Reimbursement administration

  • Employee onboarding and education

Our approach helps employers provide meaningful healthcare benefits while maintaining predictable costs.

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© 2025 Stearns HR, Sterling Heights, Michigan — Making small businesses mighty.

Stearns HR | About | Services | ICHRA Reframe
© 2025 Stearns HR, Sterling Heights, Michigan — Making small businesses mighty.