Avoid the Audit: Why HRA Compliance Should Be on Every Broker’s Radar
By Mark Mixer, CEO of HRA Simple
Compliance isn’t the sexiest part of a benefits strategy. But for brokers looking to build trust, win long-term clients, and avoid costly missteps? It’s absolutely mission-critical.
If you’re helping clients implement ICHRAs or QSEHRAs—or even just exploring the option—it’s time to take compliance off the back burner and move it to the front of your playbook.
Why HRA Compliance Is a Big Deal
Health Reimbursement Arrangements governed by strict IRS, DOL, and ACA rules. Whether it’s making sure affordability thresholds are met for ALEs, correctly defining employee classes, or delivering the proper notices, getting these regulations wrong could lead to steep fines, unhappy clients, and risking your relationship.
A few real-world risks:
Non-compliant ICHRA class definitions can invalidate an entire plan.
Missing notice deadlines can result in IRS penalties (up to $110 per day per employee).
Incorrect reimbursement practices could trigger employer tax issues or employee income problems.
Inadequate recordkeeping can fail an audit, even if intentions were good.
Most employers (and many brokers) don’t have the capacity to manage compliance well without support.
The Hidden Cost of DIY Compliance
Some brokers assume they can “set it and forget it” with ICHRA setup. Others hand off compliance to the client entirely. But here’s the problem: when things go sideways, guess who gets the call?
💥 “We didn’t know we had to give a notice.”
💥 “We reimbursed the wrong thing and now it’s taxable.”
💥 “We offered the wrong class of employees and the plan is invalid.”
💥 “We missed ACA affordability requirements and now we’re being penalized.”
When HRA compliance isn’t proactively managed, it turns a strategic benefits win into a liability for your client and for your business.
Why Working with the Right HRA Administrator Changes Everything
Partnering with a team who lives and breathes compliance means you have a partner that protects your business and your clients strategic wins.
Seamless HRA Administration ensures your clients:
Stay on top of ACA, IRS, DOL, and state-level changes (like CHOICE HRAs under H.R.1)
Handle notice delivery, tracking, and documentation automatically and in the required languages.
Support affordability testing for ALEs and ensure class design is compliant from the start.
Maintain secure systems for substantiating claims and recordkeeping.
A good HRA Administrator partner means less stress for you, fewer late-night panic emails, and far stronger outcomes for your clients.
Bonus Tip: Earn CE Credit While You Learn
Compliance doesn’t have to be overwhelming or boring (shocker!). If you're a member of NABIP, you can deepen your understanding of ICHRAs, QSEHRAs, and HRA compliance through certified continuing education (CE) courses. These trainings keep you compliant and competitive.
Here are some upcoming NABIP trainings tailored to brokers working with small business clients and individual-market strategies.
Smart Brokers Know that Compliance is a Retention Tool.
The brokers who win long term are the ones who offer value beyond the quote. When you bring clients an HRA strategy that’s compliant, well-managed, and stress-free, you solve today’s problem and earn tomorrow’s loyalty.
Bottom Line Recap
HRA compliance isn’t optional. It’s fundamental. And brokers who understand the difference between “checking the box” and true risk mitigation are the ones who keep their clients (and their reputations) intact.
Want help building a rock-solid HRA strategy for your clients?
We take compliance off your plate with seamless HRA Administration. Click here to audit your current compliance measures.
Or click here to review upcoming NABIP-approved CE courses so you can lead smarter.
