Exec­u­tive Order 13813 takes a new approach to employ­er inter­ac­tion with indi­vid­ual pol­i­cy reim­burse­ment.  This is anoth­er shot at the Afford­able Care Act and fol­low­ing reg­u­la­tions, some of which, like the allowance for indi­vid­ual plan reim­burse­ment, had been tax pol­i­cy for over 50 years.  Now the allowance is back, albeit with a set of com­plex restrictions

  1. Per­mits Health Reim­burse­ment Accounts to be inte­grat­ed with indi­vid­ual plans 
    • Employ­ees who case to be cov­ered by the pol­i­cy must for­feit the HRA
    • Employ­er can divide employ­ees into sep­a­rate class­es for HRA or group plan
    • These class­es include full time, part time, sea­son­al, CBA cov­ered, under age 26
    • Pre Tax con­tri­bu­tions allowed but not for sub­si­dized exchange premium
    • HRA must be offered on the same terms to all mem­bers in a par­tic­u­lar class
    • Ver­i­fi­ca­tion and sub­stan­ti­a­tion of the indi­vid­ual plan must be pro­vid­edThe indi­vid­ual plan must pro­vide med­ical and not just asso­ci­at­ed health benefits
    • No class of employ­ees may be offered both an HRA inte­grat­ing with both group and indi­vid­ual coverage
  2. Employ­ees have the abil­i­ty to opt out of the HRA to keep eli­gi­bil­i­ty on the Exchange
  3. HRA for health relat­ed items not relat­ed to indi­vid­ual plans is lim­it­ed to $1,800
  4. ACA would con­tin­ue to treat the HRA as an employ­er spon­sored plan