HR and finance leaders often face unpredictable health insurance costs, with renewal rates on group plans causing budget havoc. The bipartisan Health Reimbursement Arrangement (HRA) program allows companies to set budgets for employees to purchase individual insurance plans that best fit their needs. The program includes Qualified Small Employer HRA (QSEHRA) and Individual Coverage HRA (ICHRA) options, with ICHRA gaining popularity and expected enrollment to reach 11 million by 2025. Transitioning to HRAs has pros like cost control and individual plans, but requires careful planning and communication. HRAs are becoming a valuable recruitment tool, offering flexibility and continuity between employers.
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