Employers may begin offering health reimbursement arrangements (HRAs) as soon as January 1, 2020, to employees who enroll in individual health coverage, under a rule finalized by the Trump administration.
Funds in this new “individual coverage HRA” (ICHRA) will be available to reimburse premiums for individual health insurance, whether offered on or off an Affordable Care Act (ACA) exchange, as well as Medicare coverage. The rule, developed jointly by the U.S. Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury, also creates an “excepted benefit HRA” (EBHRA) that can help cover copayments and deductibles, as well as dental, vision, and short-term coverage.
