Compliance Overview – Spousal Incentive HRAs

policies, standards, compliance

Spousal incentive health reimbursement arrangements (HRAs) are a type of tax-advantaged medical reimbursement account that employers use as a cost-savings strategy. A spousal incentive HRA works like a traditional HRA in many respects, but it is only available to employees who enroll in health coverage through a spouse’s employer. By reimbursing employees on a tax-free basis for their eligible out-of-pocket expenses under a spouse’s health plan, this type of HRA incentivizes employees to enroll in health coverage through their spouse’s employer instead of their own employer.

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