» Administration Proposes Allowing All Employers to Offer HRAs to Reimburse Individual Health Insurance Policy Premiums

If Finalized, Proposal Would Become Effective for 2020 Plan Year

A new proposed rule would permit all employers to offer health reimbursement arrangements (HRAs) to reimburse employees’ individual health insurance policy premiums if certain conditions are met. Currently, many employers are prohibited from offering such HRAs. If finalized, the proposal would be effective for plan years beginning on or after January 1, 2020.

In general, the proposal would permit an HRA to reimburse premiums for individual health insurance policies only if:

• Individuals verify their enrollment in individual health insurance coverage;
• The HRA is offered on the same terms to all employees within a class;
• The employer does not offer both a traditional group health plan and the HRA to the same class of employees;
• Participants can opt out of the HRA annually; and
• Employers provide eligible participants with a written notice describing the HRA’s terms.

Click here for more information on the proposal.

Posted by Hallier Benefit Advisors in Healthcare Reform Updates