As health insurance prices climb, HRAs offer small businesses a flexible option

Rising health insurance costs are pushing more small businesses to consider health reimbursement arrangements, or HRAs, as a flexible alternative to traditional group coverage. HRAs let employers contribute tax-free funds that employees can use for eligible medical expenses or, in some cases, to buy their own health insurance. Options like ICHRAs and QSEHRAs can be especially useful for smaller employers that want to offer benefits while keeping costs more manageable.

The biggest advantage of HRAs is flexibility. Employers can decide how much to contribute, and employees may have more freedom to choose coverage that fits their needs. HRAs can also help small businesses stay competitive when hiring, though they may require extra support and administration as a company grows. Read the full article to learn more about the different types of HRAs and why they are gaining popularity.

 Read the full Philadelphia Inquirer Article.