Tony Novak profile picture
  "AskTony" column archive        


Most Popular

AskTony Archive

This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

New questions

Submit consumer finance questions at and health insurance questions at

Sponsored by: Insurance Exchange - your source of valuable information on state and federal health reform benefits.

Core Health Insurance - America's favorite mini-med insurance  with affordable premiums, freedom to choose providers, optional PPO discounts and guaranteed eligibility regardless of medical conditions.

Please support the Web sites that make publication of AskTony services possible.

HRA plan for small business

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: Have you ever heard of a 2-plan limit on the number of health insurance plans an employer is allowed to set up? My administrator refuses to set up an HRA plan for our small company because there are already two insurance plans offered. We suspect that it is an internal Aetna rule, not one which comes from the IRS or any other Federal or State source.

A: Your assumption is correct; this is an administrative issue rather than a tax or legal issue. The work-around is to have the Health Reimbursement Arrangement (HRA) administered separately from the insurance. This will also save money since insurance administrators usually charge more for HRA plan administration than a stand-alone plan. Freedom Benefits routinely sets up HRA plans when more than two insurance plans are involved. The cost is $150 and you can order the plan online for one business day setup at .


More resources:

Freedom Benefits small business HRA