June 21, 2019

ACA Regulators Finalize New Health Reimbursement Account Rule

On June 13, 2019, the ACA regulators issued a final rule expanding the uses of  health reimbursement accounts (“HRA”) by large, mid-sized, and small employers. Overruling IRS Notice No. 2013-54 , the final rule principally permits employers to use tax-excluded HRAs to reimburse employees for premiums that they incur for ACA health insurance marketplace coverage effective January 1, 2020. The rule makes provision for aligning the new Individual Coverage HRA’s (“ICHRA) with the ACA’s large employer shared responsibility rule. For more information consult the PPACA regulator’s FAQs.  In contrast to the Trump Administration’s other efforts to expand consumer choice, such as the Association Health Plan rule and the limited duration plan rule, this ICHRA rule funnels consumers into the ACA marketplaces.