HRAs limited by Affordable Care Act

02/6/2013 | Society for Human Resource Management

The Affordable Care Act will limit employers' ability to contribute to health reimbursement arrangements (HRAs) to fund employees' health-related expenses, says Timothy Jost, a professor at the Washington and Lee University School of Law in Virginia. "Some employers had hoped that with the advent of the exchanges in 2014, they would be able to offer their employees a fixed-dollar contribution through an HRA, which would permit the employee to take advantage of the tax subsidies currently available through HRA coverage but get the employer out of the health insurance business," he says. "(However, federal agencies) have concluded that stand-alone HRAs used to purchase individual coverage will not be considered to be integrated coverage that complies with the annual dollar limit requirement."

View Full Article in:

Society for Human Resource Management