How an HRA with PeopleKeep works

PeopleKeep, powered by Remodel Health, is a leader in HRA administration software for small to midsize organizations. Since starting as Zane Benefits in 2006, we’ve helped thousands of organizations offer health benefits their employees love.

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Any employer with W-2 employees can offer an HRA. However, your business size and benefit offerings affect which type you can offer. A QSEHRA is available to employers with fewer than 50 full-time equivalent employees (FTEs) who don’t offer a group health or ancillary plan. An ICHRA or GCHRA is available to organizations of all sizes.

In general, any W-2 employee can participate in an HRA. However, each HRA has specific participation requirements. To participate in a QSEHRA, employees must have coverage that meets or exceeds minimum essential coverage (MEC) standards. To participate in an ICHRA, employees must have a qualifying form of individual health insurance coverage. To participate in a GCHRA, employees must participate in their organization’s group health plan. Employers can customize employee eligibility for an ICHRA and GCHRA with employee classes.

Yes, COBRA applies to certain types of HRAs. Since ERISA doesn’t consider a QSEHRA a group plan, it isn’t subject to COBRA. However, the ICHRA and GCHRA are subject to COBRA requirements.

Learn more about how COBRA applies to HRAs

Yes, HRAs are HSA-compatible with special rules. Employers must modify the employees’ HRA and create a limited-purpose HRA. This means employees can only use their HRA for health insurance premiums, dental and vision expenses, and long-term care premiums.

See how to offer a QSEHRA and an HSA.

See how to offer an ICHRA and an HSA.

HRAs are employer-owned. Employees can’t take their unused allowances with them when they leave your organization.

Only employers can contribute to HRAs under federal regulations. 

An HRA can reimburse employees for more than 200 qualified medical expenses listed in IRS Publication 502 and the CARES Act. Depending on the type of HRA you offer, this can include individual health insurance premiums.

See the complete list of HRA-eligible expenses.

No. Employees who meet the participation criteria for an HRA receive tax-free reimbursements for items listed in IRS Publication 502.

Yes, there are reporting requirements with HRAs. With a QSEHRA, you must report your employees’ allowances on their Form W-2s in Box 12 with code FF.

Learn more about QSEHRA W-2 reporting requirements.

Reporting requirements for an ICHRA depend on your organization’s size. If you have fewer than 50 FTEs, you must complete Form 1094-B, Form 1095-B, and Form 5500-SF or Form 5500-EZ. If you have 50 or more FTEs, you must complete Form 1094-C, Form 1095-C, and Form 5500.

Learn more about ICHRA reporting requirements.