Explore Coverage Options for Your Small Business

Individual Coverage Health Reimbursement Arrangements

Offering health coverage is a major decision for your small business! If you’re exploring your coverage options, you’ll want to consider things like the cost to you and your employees, and the health services covered. Starting in 2020, you now have more ways than ever to contribute to your employees’ health care costs using a new individual coverage health reimbursement arrangement (HRA). With an individual coverage HRA, employers will be able to help their employees pay for qualified health insurance costs – such as monthly premiums for individual market plans – through a non-taxed reimbursement. This allows employers the ability to better control costs, while providing employees the flexibility they need to pick individual health insurance that is right for them and their families. Visit HealthCare.gov to find out if you can offer an individual coverage HRA, which employees are eligible for your offer, and how to set up an individual coverage HRA!

Need help? Talk to a licensed tax professional, benefits specialist, or a registered agent or broker to find out more about whether an HRA or traditional group coverage is right for your business.