Health Reimbursement Arrangement (HRA)

A Health Reimbursement Arrangement (HRA) may be an appealing option for household employers who wish to provide tax-free health benefits to their employees.

A Creative Way to Contribute to Healthcare Expenses

HRAs have been the best option for healthcare benefits in the household employment industry for many years – whether you use an HRA as a standalone option or combine it with a qualified group health plan.

They are flexible, convenient, and cost-effective, offering such benefits as:

• Freedom of choice to help control healthcare costs for your employee
• Control in making your employee accountable for the management of their medical treatments
• Convenient roll-over feature so you don’t lose your contributions at the end of the year or when an employee leaves
• Flexible budget options with contribution amounts that you determine
• Versatility: An HRA can be used alongside other savings accounts and healthcare options, and can be used to fund insurance premiums and deductibles
• Popular with employees: HRAs use employer contributions, not employee salary deductions

Through our affiliate GTM Insurance Agency, setting up an HRA is straightforward. We’ll support you throughout the entire process, from defining the amount you want to contribute to providing your employees with information about reimbursable medical expenses and submitting claims, to tracking the status of your account.

Looking for some other health benefit ideas? Explore these options or download our Employee Benefits Overview (PDF) for more information.

Health Insurance & Benefits Options Comparison

The information below will help you compare the various plans and select one that will best meet the needs of your nanny. These are contribution rates for 2025.

HRA

✔ Employer funded

✔ Employer tax savings

✘ Employee funded

✘ Employee tax savings

✔ Covers out-of-pocket expenses

✔ Covers insurance premiums

✘ Used to purchase health insurance

Contribution limit: No limit

Pairing: Group plan

Coverage restrictions: Must cover at least two employees

QSEHRA

✔ Employer funded

✔ Employer tax savings

✘ Employee funded

✘ Employee tax savings

✔ Covers out-of-pocket expenses

✔ Covers insurance premiums

✔ Used to purchase health insurance

Contribution limit: $6,350 single / $12,800 family

Pairing: Individual plans

Coverage restrictions: None

ICHRA

✔ Employer funded

✔ Employer tax savings

✘ Employee funded

✘ Employee tax savings

✔ Covers out-of-pocket expenses

✔ Covers insurance premiums

✔ Used to purchase health insurance

Contribution limit: No limit

Pairing: N/A

Coverage restrictions: None

FSA

✔ Employer funded

✔ Employer tax savings

✔ Employee funded

✔ Employee tax savings

✔ Covers out-of-pocket expenses

✘ Covers insurance premiums

✘ Used to purchase health insurance

Contribution limit: $3,300

Pairing: N/A

Coverage restrictions: None

HSA

✔ Employer funded

✔ Employer tax savings

✔ Employee funded

✔ Employee tax savings

✔ Covers out-of-pocket expenses

✔ Covers insurance premiums

✘ Used to purchase health insurance

Contribution limit: $4,300 single / $8,550 family

Pairing: High-deductible plan

Coverage restrictions: None