Excepted Benefit HRAs for 2021

Employers may offer employees a reimbursement plan to pay for certain costs not covered by group health insurance. An Excepted Benefit Health Reimbursement Arrangement (EBHRA) can cover a set dollar amount each year. The dollar amount is fixed by law and not by the employee. However, it may be adjusted annually for inflation. For 2019, the reimbursement cap was $1,800. The IRS announced that it will remain the same $1,800 for 2020 (Rev. Proc. 2020-43).