In an article published by Managed Healthcare Executive, I discussed the potential impact of a recently proposed regulation from the U.S. Departments of the Treasury, Health and Human Services and Labor that expands the usability of health reimbursement arrangements (HRA). The new rule as proposed would apply for most health plans beginning January 1, 2020, and would be particularly beneficial to employees of small employers who are not required to offer health plan coverage to their full-time employees under the ACA. Currently, employers of any size offering a standalone HRA without underlying major medical coverage are subject to ACA penalties. The proposed rules would change this restriction for HRAs that are used to pay for individual health insurance coverage or excepted benefits.
Doug adds that this proposal would remove some barriers for individuals not covered by major medical plans or those that currently receive no employer contributions toward healthcare.
The full article, “Looser Restrictions on HRAs on the Horizon,” was published by Managed Healthcare Executive on November 8, 2018, and is available online.