Health Reimbursement Arrangements (HRAs) reimburse employees for medical expenses and are offered and funded by employer contributions. If an employer offers an HRA the employee can use that benefit to enroll in health coverage through Pennie, but this may affect their eligibility for tax credits. This information must be added to their Pennie application and the Advanced Premium Tax Credits (APTC) amount adjusted to prevent tax liability.
There are several types of HRAs, including individual coverage health reimbursement arrangements (ICHRA) and qualified small employer health reimbursement arrangements (QSEHRA). Individuals offered an ICHRA are not eligible for APTC, but those offered a QSEHRA might be based on other factors. If an individual is offered an HRA, they should receive information from their employer regarding the type of HRA offered. This information will also include the amount of the benefit, effective dates, other family members who may be covered, if minimal essential coverage is required, and any other terms set forth by the employer.