It depends on the business structure.
In general, C-corporation owners can participate in an HRA, since they’re considered employees of the corporation. Their medical expenses—and their family’s—can be reimbursed tax-free through the HRA.
However, sole proprietors, partners, and more-than-2% shareholders in an S-corporation are not considered employees under IRS rules. That means they cannot participate in an HRA on a tax-free basis, though they may be able to deduct certain health expenses elsewhere on their personal tax return.
Note: Even if the owner isn’t eligible, they can still offer HRAs to their W-2 employees.