On June 13, 2019, the U.S. Departments of Health and Human Services, Labor and the Treasury issued a final rule allowing employers of all sizes to offer two new kinds of health reimbursement arrangements (HRAs). The two new HRAs include:
- individual-coverage HRAs and
- excepted-benefit HRAs.
These new HRAs must meet certain conditions and may be offered to employees on or after January 1, 2020. We’ve gone ahead and compiled information on these two HRAs and on how Employee Benefits Corporation will be moving forward with these new HRA options:
With Individual-Coverage HRAs, employers of all sizes will now be able to offer pre-tax, employer dollars so that employees can purchase individual medical insurance plans (in some cases, paying for Medicare premiums) in addition to Section 213(d) medical care expenses.
With the Excepted-Benefit HRA, employers of all sizes will now be able to offer pre-tax, employer dollars so that employees can purchase excepted benefit plans (such as limited-scope dental or vision plans) in addition to Section 213(d) medical care expenses. This plan can be offered to all employees who are eligible for a group health plan, but does not require the employee to be enrolled in the group health plan.
Employee Benefits Corporation as an HRA Market Leader
Employee Benefits Corporation is currently reviewing the nearly 500 pages of regulations to understand the full impact of these rules on our products and services. We are working toward any needed adjustments so that we can continue to support our clients and ensure that all requirements regarding the new HRA options are met. We expect to be able to accommodate requests from clients for the new HRA options by 2020.
Article Credit: Employee Benefits Corporation