The Trump administration is proposing to allow U.S. workers to use tax-free health reimbursement arrangements to shop for coverage in the individual market. It’s another move aimed at expanding consumer choices and lowering costs for small businesses.
The departments of Labor, Treasury and the HHS will release a proposed rule Tuesday that would allow employers to fund tax-exempted health reimbursement arrangements to help pay for workers’ individual health insurance premiums, undoing Obama-era guidance that restricted HRAs for that purpose.
The proposed rule would also allow employers that offer traditional group health coverage to fund an HRA of up to $1,800 per year to reimburse employees for certain medical expenses, including stand-alone dental benefits or premiums for short-term insurance plans.
Senior administration officials said reducing Obama-era limitations on the use of HRAs would increase health insurance options for workers while reducing costs and administrative burden for employers, particularly small and mid-sized ones.
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Article source: http://www.modernhealthcare.com/article/20181022/NEWS/181029987