Before 2020, most of us assumed that going to work meant physically showing up at a building, logging into your computer at a desk, and getting your tasks done under fluorescent lighting. Health benefits, like many other parts of the job, were location-based and one-size-fits-all. You lived near the office, and your employer picked one health insurance plan for everyone on staff—whether it fit your needs or not.
Then came the remote work revolution.
Now, teams are spread across states, time zones, and even countries. Employees have swapped cubicles for kitchen tables, commute time for family time, and rigid 9-to-5 schedules for flexible workdays. With this massive shift came a new challenge: how do you support a workforce that no longer shares a ZIP code—let alone a healthcare network?
As it turns out, the answer lies not just in technology or telehealth but in rethinking health benefits entirely. Distributed teams need benefit models that are just as flexible as the way they work, and that’s where tools like Health Reimbursement Arrangements (HRAs) are stepping in to fill the gap.
Traditional Health Benefits No Longer Work for Remote Teams
When everyone worked from the same city, it made sense for employers to select one group health insurance plan. But for remote-first or hybrid companies, that model breaks down fast.
Here’s why:
- Health insurance markets vary by state. A great plan in California might be unusable in Texas or Vermont.
- Provider networks are regional. Employees might live in rural areas or states with limited access to certain specialists, making a single plan insufficient.
- Costs differ dramatically. Premiums, deductibles, and out-of-pocket maximums can swing wildly from one location to another.
For remote teams, forcing everyone into one group plan often leads to frustration, limited coverage, and wasted dollars—for both the employer and the employee.
The New Normal: Choice, Portability, and Flexibility
Remote work has made employees more mobile, and they now expect their benefits to move with them. Whether they’re relocating to a different state or just spending a few months working from a cabin in the woods, people want healthcare that makes sense for their life—not the life they had before.
Companies that embrace this mindset are finding that offering benefits with built-in choice and flexibility isn’t just a perk—it’s a competitive advantage. It shows employees that you trust them to know what’s best for their health and their family, and that you’re willing to meet them where they are.
That’s a powerful message in a world where retention and employee satisfaction are top priorities.
HRAs: A Flexible Solution for a Distributed Workforce
Enter the Health Reimbursement Arrangement (HRA)—a lesser-known but incredibly powerful benefits tool. Unlike a traditional group plan, an HRA allows employers to reimburse employees for their own health insurance premiums and medical expenses—on a tax-free basis.
Instead of forcing everyone into one plan, HRAs give employees the freedom to choose the coverage that fits their needs, in their location, at their price point. As an employer, you choose the HRA platform and decide how much to contribute per month or year, and your team gets to use that money to offset their healthcare costs. It’s simple, elegant, and incredibly well-suited to modern, remote-first organizations.
There are a few types of HRAs that work particularly well in remote environments:
- Individual Coverage HRA (ICHRA): Employees purchase their own health insurance (often through the ACA marketplace or a broker), and the employer reimburses them up to a set amount each year. This option is ideal for teams spread across different states, because it allows each employee to find a plan in their local market.
- Qualified Small Employer HRA (QSEHRA): Designed for small businesses with fewer than 50 full-time employees, this option provides tax-free reimbursement for both premiums and qualified medical expenses, without the need to offer a group plan.
Both options offer serious tax advantages—for the employer and employee alike—and give you complete control over your healthcare budget.
The Benefits of Going Flexible
Moving from a traditional group health plan to an HRA-based model may feel like a big shift, but the benefits are hard to ignore:
- Cost predictability: You set the budget upfront, so there are no surprise rate hikes or hidden fees.
- Employee choice: Each team member chooses a plan that works for their health needs and family situation.
- Scalability: Whether you’re a team of five or fifty, an HRA grows with your company and works across state lines.
- Administrative ease: No more managing group plan renewals or dealing with complex enrollment logistics.
And perhaps most importantly, HRAs empower your team to take control of their health without you needing to micromanage their choices.
A Win for Employers and Employees
In the early days of remote work, many employers scrambled to patch together benefits that “sort of” worked across geographies. But now, we’re moving into a new era—one where smart businesses are building remote-ready benefit strategies from the ground up.
HRAs allow you to support your team’s healthcare in a way that’s thoughtful, equitable, and efficient. You’re no longer guessing what plan works for most people—you’re giving everyone the opportunity to choose what works for them.
And as a business, that’s not just good ethics—it’s good economics.
Final Thoughts
Remote work changed a lot of things. It reshaped where we live, how we connect, and what we expect from our jobs. But one of its most lasting impacts may be how it forced us to rethink something as fundamental as healthcare benefits.
Today’s workforce isn’t one-size-fits-all—and your benefits shouldn’t be either. If you want to meet your employees where they are (literally and figuratively), tools like HRAs offer the flexibility, fairness, and financial sense that modern teams need.
So the next time you think about your benefits strategy, don’t just think about what worked five years ago. Think about what works now. Think flexible. Think remote-ready. Think HRA.