Health Reimbursement Arrangements
A Health Reimbursement Arrangement (HRA) is an employer-funded account. There are different types of HRAs. Employees can use 2 types – an Individual Coverage HRA or a Qualified Small Employer HRA – to pay premiums for an Individual & Family plan on DC Health Link.
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Using Your Health Reimbursement Arrangement
You can use 2 types of Health Reimbursement Arrangements (HRAs) to pay for premiums for an Individual & Family health insurance plan on DC Health Link: an Individual Coverage HRA or a Qualified Small Employer HRA.
Here are a few important things to know about your HRA:
- Your employer must send you information about your HRA before your benefits start.
- You get a special enrollment period to enroll 60 days prior to when your HRA starts. This means you can sign up for a plan, even if it isn’t open enrollment in the Individual & Family market.
- You may still qualify for lower monthly premiums, but only if your HRA is considered unaffordable based on federal standards. In some cases, it’s cheaper to opt out of your HRA and apply for lower monthly premiums instead. Use our HRA affordability tool to see your options.
- If you have a salary reduction agreement and plan to use your HRA, you will need to contact us or find a Broker for help with the enrollment process to avoid owing money on your taxes.
Have questions or need help with the HRA that was offered to you? Contact us at (855) 532-5465 / TTY: 711 or find a Broker.
Offering Health Reimbursement Arrangements
There are 2 types of Health Reimbursement Arrangements (HRAs) you can offer that allow your employees to use what you contribute to pay for Individual & Family plan premiums on DC Health Link:
- Individual Coverage HRA: For employers of any size.
- Qualified Small Employer HRA: For employers with fewer than 50 full-time equivalent employees.
Use our SmartChoice for Business Tool to compare estimated costs of offering an HRA, offering a Small Business health insurance plan, or raising wages.
Brokers are available at no cost to you to help you understand your options. Find a Broker
If you are a large employer determining if your offer of an HRA meets federal requirements to avoid a penalty, use our Large Employer HRA Affordability Calculation.