health reimbursement accounts have been popular type of medical reimbursement plan used by employers to control the costs of health care. The Affordable Care Act ( "Obamacare"), however, has changed the rules for health plans, including Health Reimbursement Accounts (CRH).
HRAs are still available under Obamacare? Obamacare has not completely killed CRH, but there are new rules HRAs must follow. This article summarizes how HRAs can and can not be used today.
General information on CRH and Obamacare
Before entering the availability CRH today, it is important to understand CRH how Obamacare impacts. Here is a brief summary.
In 2010, when Obamacare passed one of the big questions is how HRAs would be affected by the new regulations for group health plans.
In 2013, the Ministry of Labour announced standalone HRAs (with more than 2 participants) would need to comply with each year limit regulations (PHS Act 2711). As such, the availability of autonomous HRAs after 2014 was limited for most companies.
These new Obamacare reforms are commonly called "market reforms." Employers using HRC that do not comply with market reforms may face a tax of $ 100 / day per employee excise applicable from 1 July 2015.
How you Can Use HRAs today
Under current rules Obamacare, there are three main ways employers can use HRAs today:
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integrated HRA -. You can usually still offer HRA if it is linked to a group health insurance plan
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retirees Only HRA -. You can always offer an HRA to retired employees retired only CRH are exempt market reforms
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one-Person Stand-Alone HRA -. You can still offer stand-alone HRA if there is only one participant in the plan. A CRH autonomous person are exempt from market reforms.
How you not Use HRAs Today
As mentioned, the great Obamacare change is that autonomous HRAs (with two or more participants) are not available to most businesses.
What is a stand-alone HRA? A standalone HRA is not linked to a group health insurance plan. It is offered as a free health service and is typically used to reimburse employees for health insurance premiums and / or medical expenses out of pocket.
If you offered a booth -alone HRA, and the plan has two or more participants, you will need to adopt a new repayment plan that is in line with market reforms, such as Article 105 health repayment plan . This likely means changes to the plan will pay, and how it is structured.
How You Can Repay individual health insurance premiums Today
If you've used a standalone HRA in the past, or seek to reimburse employees for health insurance premiums, you can use a health repayment Plan (HRP) .
reimbursement of health plan is a type of medical reimbursement plan designed for individual repayment of health insurance.
properly structured, a health plan reimbursement complies with all applicable regulations, including Obamacare market reforms.
Conclusion
Under Obamacare, the rules have changed on CRH. Are CRH still available? In some cases, yes. Employers who have used self HRA, however, should switch to a repayment plan conforms to avoid significant costs
Related articles :.
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CRH in 2015 - What all employers need to know
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HRA HSA vs vs vs FSA Comparison Chart PRA
What questions do you have about health reimbursement accounts (HRA) and Obamacare? Leave a comment or question below.
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