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New Proposed Rules to Allow All Employers to Offer HRAs to Reimburse Individual Health Insurance Policy Premiums
Wednesday, October 31 2018

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 HRAs to reimburse premiums for individual health insurance policies only if:

  • All individuals covered by the HRA verified that they are, or will be, enrolled in individual health insurance coverage;
  • No class of employees is offered a choice between a traditional group health plan and the HRA;
  • The HRA is offered on the same terms to all employees within a class;
  • Participants can opt out of the HRA annually; and
  • Employers provide eligible participants with a written notice describing certain features of the HRA.

Click here for more information on the proposal and contact Wendee Allen of PNW Insurance Solutions at (425) 314-0988 with questions.

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