Trump Plan Targets Restrictions On Health Reimbursement Options For Small-Business Employers
The administration is proposing regulations to expand so-called "health reimbursement arrangements," which are employer-funded, tax-advantaged accounts that employees can use to cover health costs. Critics say the move could allow employers to devise strategies for shifting workers with high health care costs off their corporate plans.
The Associated Press:
Trump Administration Unveils Health Options For Small Firms
The Trump administration is rolling out new options for small employers to use tax-free accounts for providing health coverage to workers, officials said Monday. The idea is to expand so-called "health reimbursement arrangements" to allow employees to buy their own individual health insurance policies. Employers could also pair the accounts with workplace health plans, allowing workers to use the money for additional benefits such as dental care. (10/22)
The Hill:
Trump Administration Plans To Revamp Employer-Based Health Care
HRAs allow workers to purchase coverage using tax-free dollars. Currently, an HRA can only be used to reimburse an employee or dependents for certain qualified medical expenses. The Obama administration prohibited HRAs for large- and mid-sized companies, and the IRS previously said HRAs did not comply with ObamaCare coverage requirements. HRA contributions can only be tax-free if they are coupled with a health plan that meets ObamaCare’s coverage protections. (Weixel, 10/22)
CQ:
Trump To Expand Employers' Tax-Favored Health Plan
Administration officials say they expect the proposed rule would offer more choices to employees, particularly those who work at small businesses who may only have one insurance plan option or who don't currently receive insurance through their employer. A senior administration official told reporters Monday evening that the proposed rule “dramatically increases choices for workers whose employers offer an HRA" by giving employers more options for providing health care to workers. Initial estimates suggest that 10 million employees could be affected by the HRA rule, including 1 million who could be newly insured, said Dan Kowalski, a counselor to the Treasury secretary. Offering these plans would count toward the requirement for most large employers to offer their workers health insurance under the 2010 health care law. (McIntire, 10/22)
