Retiree HRA From Empower
Help former Employees pay for Eligible Medical Expenses
A flexible solution for employers looking to provide retiree health benefits without the cost and complexity of a traditional retiree health plan.
Retiree HRA from Empower
What is a Retiree HRA?
A Retiree HRA is an employer-funded reimbursement arrangement that allows former employees to be reimbursed for eligible healthcare expenses after retirement. Employers define the amount of funding available and the types of expenses that can be reimbursed, which commonly include Medicare premiums and other qualified medical costs.
Unlike traditional retiree health insurance, a Retiree HRA does not require the employer to sponsor or manage an insurance plan. Instead, it provides a defined contribution that retirees can use toward eligible expenses, giving employers cost control and administrative flexibility while still offering meaningful retiree health support.
Why Employers Offer Retirement HRAs
Predictable Employer Costs
Employers set defined contribution amounts in advance, avoiding the open-ended liability of traditional retiree health coverage
Supports Retirees with Healthcare Expenses
Helps former employees manage Medicare premiums and other eligible out-of-pocket medical costs after retirement.
Flexible Plan Design
- Eligibility rules, funding levels, and reimbursement structures can be tailored to organizational goals.
Tax-advantaged reimbursements
Reimbursements are generally tax-free to retirees when used for eligible medical expenses.
Simplifies retiree benefits administration
Avoids the complexity of sponsoring or maintaining a traditional retiree health insurance plan.
What Makes Empower Different?
Unlike rigid, one-size-fits-all programs, Empower’s SpHRA is designed to preserve employer control over plan structure and eligibility.
No required percentage-of-savings pricing model
Empower uses a transparent PEPM pricing structure, not savings-based fees.
No mandated spousal surcharges
Employers are not required to implement penalties or offsets to make the design work.
No rigid eligibility framework
Employers retain control over eligibility rules, contribution levels, and plan structure.
Who We Are
Empower has administered employee benefits since 2004, with a focus on flexible, compliance-driven reimbursement arrangements and practical plan design.
Not sure where to start? We’ll help you explore your options and build a plan that works for your organization.
Ready to Get Started?
Whether you’re implementing a new plan or considering a change, our team can help you evaluate your options and build a solution that works for your organization.