New HRA Rules Allow Employers to Reimburse for Individual Health Plans in 2020
By Paula WilsonHRA’s or Health Reimbursement Arrangements have been around for decades. New regulations have just been released for Individual Coverage Health Reimbursement Accounts (ICHRA) and Excepted Benefits Health Reimbursement Accounts (EBHRA). Both are designed to allow employers to reimburse employees for their qualified health care expenses.
This new law would take effect on January 1, 2020. Employers would enjoy preferred tax treatment of these plans and employees would receive the reimbursements without creating a taxable event.
Employers would utilize an ICHRA, a newly defined Health Reimbursement Arrangement to reimburse employees for their qualified health insurance premiums and any scheduled medical expenses. … Read the rest