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This allows the employer to essentially provide health insurance benefits without maintaining a conventional group health insurance plan. The excepted benefit HRA allows employers of any size to use pretax dollars to reimburse certain benefits. find more info For plan years beginning on or after Jan. 1, 2020, the individual limit is $1,800 (carryover amounts are not counted in the annual limits). Note that employers may not offer both an EBHRA and an ICHRA to the same employee. Of course, there is always the option of employee wage increases. However, this can be problematic, as these dollars are taxed as income to the employee and employers set a potential precedent that pay raises can be offered whenever certain aspects of the cost of living go up. Key takeaway: Employers have several options of HRAs for employees. The four main types – QSEHRA, group or individual coverage, ICHRA, and EBHRA – are pretax in nature and offer advantages for both the employer and employees.   Patrick Proctor, SHRM-SCP, is certified as a senior professional in human resources.