Wondering if traditional group coverage—like a plan offered through the Small Business Health Options Program (SHOP)—or a Health Reimbursement Arrangement (HRA) is right for your small business? Understanding eligibility requirements, coverage options, and costs can help you decide which option fits the needs of your small business and employees.
The difference between certain types of HRAs and traditional group coverage
What's an excepted benefit HRA?
If you offer group coverage, you may be able to help reimburse your employees for certain health benefits up to an annual maximum of $1,950 in 2023 (adjusted annually for inflation), like vision or dental coverage, coinsurance and copayments for individual coverage, short-term health insurance, or other health care costs. This type of HRA isn’t allowed to reimburse premiums for individual coverage, traditional group health plans (other than COBRA or other continuation coverage), or Medicare. Review frequently asked questions about HRAs for individual coverage and excepted benefits (PDF, 408 KB).