What is an individual coverage HRA, and do 2027 premiums affect it?
An individual coverage HRA lets an employer reimburse employees for individual-market premiums. The employer sets the allowance, so higher marketplace premiums mean a fixed allowance covers less of the cost.
It is worth re-checking before you announce 2027 allowances. Send us your renewal and we will give you a second opinion in writing.
Three quick answers.
What it is
An employer-funded arrangement under 26 CFR §54.9802-4 that reimburses employees for individual-market coverage they buy.
What it depends on
The allowance, the employee classes you define and the notice you give before the plan year.
Where to go next
See the full guide to 2027 allowances.
Keep reading.
HealthCare.gov premiums rise again in 2027
What the 2027 marketplace increases mean for an employer plan. Back to the marketplace page.
Keep reading on 2027 marketplace premiums.
Where these figures and rules come from.
Figures and rules
Individual coverage HRA rules: 26 CFR §54.9802-4. KFF and The Hill: KFF estimates about 13% for HealthCare.gov in 2027, as reported by The Hill on October 31, 2026; KFF’s review of insurer filings found a median proposed increase of 15% (KFF, How Much and Why ACA Marketplace Premiums Are Going Up in 2027). This page is general information, not legal or tax advice.
Send us your renewal.
Four documents — the renewal letter, the plan summary, the contribution split by tier and enrolled counts by tier. We’ll come back with a competitive read, where we see opportunity, and the five questions we’d put to your carrier.
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