There are currently three basic Health Reimbursement Arrangement Plans in the market.

Fully Insured HRA

This plan is most popular with employers who currently have fully insured co-pay plans. It is designed to help reduce the cost of group medical coverage by combining an HRA with a high deductible major medical plan. The typical premium savings is around 15%.

Self-Funded HRA

This plan is a good option for partially self-funded health, dental and vision plans. Here the employer provides their employees with funds to use for specific health, dental or vision expenses which are not covered under the group plan.

Benefit Allowance HRA

This is an old concept that has been revitalized due to the increasing costs of health insurance. Rather than purchase a specific group health plan, the employer provides a defined benefit allowance and the employees use the allowance to purchase their own individual health insurance. The employer then provides the employee the opportunity to be reimbursed tax-free for their out-of-pocket medical expenses and personal health insurance expenses.