A type of Health Reimbursement ArrangementHealth Reimbursement Arrangements (HRAs) are employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year. Unused amounts may be rolled over to be used in subsequent years. The employer funds and owns the arrangement. Health Reimbursement Arrangements are sometimes called Health Reimbursement Accounts.Refer to glossary for more details. that reimburses medical expenses, like monthly premiums, and requires eligible employees and dependents to have individual health insurance coverage or Medicare Parts A (Hospital Insurance) and B (Medical Insurance) or Part C (Medicare Advantage) for each month they are covered by the individual coverage HRA.An employer can offer an individual coverage HRA instead of other job-based insurance that meets requirements for affordability and minimum value standards.Employees and dependents with an individual coverage HRA offer qualify for premium tax creditsA tax credit you can use to lower your monthly insurance payment (called your “premium”) when you enroll in a plan through the Health Insurance Marketplace®. Your tax credit is based on the income estimate and household information you put on your Marketplace application.Refer to glossary for more details. only if the employer’s offer doesn’t meet minimum standards for affordability, and they opt out of individual coverage HRA coverage.Related contentLearn more about what an individual coverage HRA offers