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November 8, 2018

The Trump administration proposed a rule to allow employers to offer Health Reimbursement Arrangements (HRAs) integrated with individual insurance coverage – an option previously only allowed for group coverage.

The Council’s Perspective: This proposed integration would allow the combined HRA-individual plan coverage to satisfy certain ACA requirements. There will be more to come on how the proposed approach would affect employers’ mandate responsibilities once The Departments issue further guidance.

The Treasury Department predicts that 10 million employees would obtain coverage through an HRA as a result of the proposal. Critics, however, raise concerns about the potential for employers to incentivize employees with health conditions to move to the individual market using an HRA. We may not see much impact in 2019 though, as many employers have already completed or are in the process of completing open enrollment for the upcoming year.

The Council’s legal counsel at Steptoe & Johnson plans to submit comments to the proposed rule on members’ behalf during the 60-day comment period. Click here for a full memo on the proposal.