COLUMBUS, OH / ACCESSWIRE / July 1, 2019 / Effective January 1, 2020, employers can establish two new Health Reimbursement Accounts (HRAs) – an Individual Coverage HRA (ICHRA) and an Excepted Benefit HRA (EBHRA). This could be a significant development for employers sponsoring employee health benefit plans – both insured and self-funded.
Questions
Employers Should Ask
Employers should consider the following questions regarding the impact of the new rules.
What Changed?
Effective January 1, 2020, two new HRAs can be established.
Individual Coverage HRA (ICHRA)
As long as the individual purchases ACA-compliant health coverage, the employer (of any size) can reimburse the employee for those premiums subject to these rules:
Excepted Benefit HRA (EBHRA)
Those employers wishing to continue offering traditional health benefits (including PPOs, HMOs, or qualified high deductible health plan/HSA plans) can offer an EBHRA to pay:
Although these reimbursements are also tax-exempt, the amount that can be contributed by the employer is limited to $1,800 per year. This amount will be indexed for inflation after 2020.
An employee could opt-out of his/her employer-sponsored health plan and still be eligible for the EBHRA. However, an employee cannot have both an ICHRA and an EBHRA.
About
Findley
Findley is an independent human resources and employee benefits consulting and solutions firm that delivers value, responsiveness and expertise to help clients navigate today’s evolving business environment. With 50 years of experience, the firm partners with clients to align people and benefits strategies with business goals. Findley’s more than 250 associates are located in Chicago, Cleveland, Columbus, Ohio, Toledo, Ohio, Louisville, Ky., Pittsburgh, Pa., and Nashville, Tenn., and serve more than 2,000 clients across all 50 states. To learn more visit findley.com.
READ THE FULL ARTICLE
For additional information about actions plan sponsors should consider as a result of the new HRA Rules plus details about how we got to this point, read
the full article.
For additional information, contact:
CONTACT:
Bruce
Davis
Principal
bruce.davis@findley.com
419-327-4133
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View source version on accesswire.com:
https://www.accesswire.com/550318/New-Health-Reimbursement-Account-HRA-Rules-are-a-Potential-Game-Changer-for-Employees-and-Employers
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