A little more than 18 months after President Trump signed an executive order directing the Secretaries of Labor, Treasury and HHS to “increase the usability of HRAs,” the Departments have issued their final regulations. This additional guidance, which comes a mere eight months after the proposed rules, confirms the expansion of HRAs in ways that could significantly change the health benefits landscape – especially for (small) employers.
With HRAs, the intent is to increase the usability of HRAs, expand an employers’ ability to offer HRAs to their employees, and allow HRAs to be used in conjunction with individual coverage. Expanding the flexibility and use of HRAs would provide many Americans, including employees of small businesses, with more options for financing healthcare.
What does this mean for you?
TASC will administer Individual Coverage HRAs (ICHRA) effective January 1, 2020. Points to remember:
- An ICHRA is a company-funded, tax-advantaged health benefit used to reimburse employees for out-of-pocket expenses and/or individual premiums.
- ANY size employer may participate in an ICHRA.
- No maximum amount for reimbursements.
- Available to employers with both group health plans and individual plans.
- Multiple classes allowed – giving employers flexibility to offer different amounts based on budget.
- Offering an ICHRA counts as an offer of coverage under the employer mandate.
For additional information, view the TASC ICHRA page and contact your TASC provider.
