Prior to the Affordable Care Act (ACA) in 2014, comprehensive health plans were allowed multiple exclusions for essential services like maternity care, hospital treatment, or even prescription drugs. Since the ACA’s passage, all individual and small group medical plans must offer a set package of services, or Essential Health Benefits, for all those enrolled.

While large group plans are exempt from this requirement, most employer-sponsored plans typically cover the Essential Health benefits to ensure their employees have the best coverage.

For those that have their own individual health insurance plan, such as with a health reimbursement arrangement (HRA), their plans are subject to essential health benefit regulations.

In this article, we’ll go over what the essential Health Benefits are, why they were created, and how an HRA works under essential health benefits requirements.