Journal of Accountancy
By Sally P. Schreiber, J.D. October 25, 2018

In REG-136724-17, the Departments of the Treasury, Labor, and Health and Human Services issued proposed regulations on health reimbursement arrangements (HRAs), which were originally penalized under the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148, but were later restored by the 21st Century Cures Act, P.L. 114-255. HRAs are generally account-based group health plans funded solely by employer contributions that reimburse employees for health care costs.

The departments noted that the regulations were being issued to increase the usability of HRAs, to expand employers' ability to offer HRAs to their employees, and to allow HRAs to be used in conjunction with nongroup health insurance coverage (generally coverage on the individual market).

Accordingly, the proposed regulations would relax the rules that allow HRAs to be integrated with group health plans but not with individual health insurance coverage. The propose regulations would also allow the Sec. 36B premium tax credit rules to be disregarded to permit employees whose employers maintain HRAs to be eligible for the credit. Read more.