Health reimbursement account
[3] Following implementation of the Affordable Care Act, HRAs must be integrated with a qualified employer-sponsored group health insurance plan to avoid excise tax penalties.This new tax-advantaged tool is called an ICHRA (Individual Coverage HRA) and brings greater flexibility in design, expands upon the benefits that its predecessor, the QSEHRA, offered, and presents a potential solution to the issue of premium tax credits and HRA benefits that QSEHRAs posed.No more hassling with renewals, participation rates, stressing about doctor networks, or getting constant annual increases—just decide which benefits go to which classes of employees, set monthly allowance for each, and it's done.[10] The HRA Council, a non-partisan advocacy group made up of health insurance leaders, brokers, administrators, and organizations, released its first ICHRA report in October 2022.[14] According to the IRS, employees are reimbursed tax-free for qualified medical expenses up to a maximum amount for a coverage period.HRAs must follow "a variety of statutory rules and provisions" including the COBRA continuation coverage requirements, ERISA, and HIPAA.[17] Rules pertaining to their reimbursements are perceived by member participants to be somewhat contradictory and/or even incoherent, leading some to lose contributions intended for healthcare but later (after the procedure or laboratory test) to be disallowed.