Health officials issued a final rule that expands the usability of health reimbursement arrangements (HRAs).
Effective in 2020, the final rule establishes two new types of HRAs:
Individual Coverage HRA:
Allows employers to offer an HRA to be used to reimburse the cost of individual market premiums on a tax-preferred basis, subject to certain conditions, as an alternative to traditional group health plan coverage.
Excepted Benefits HRA:
Allows employers that offer traditional group coverage to provide an HRA of up to $1,800 per year (as adjusted) to reimburse certain qualified medical expenses.
Contact Benefit Analysts if you have questions about the options for HRAs.
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