They’re Back! HRA’s and Individual Health Insurance

Effective January 1, 2020 the IRS will allow HRAs to be used in conjunction with individual coverage. Expanding the flexibility and use of HRAs would provide many Americans, including employees of small businesses, with more options for financing healthcare.

What are the features of using HRA dollars for individual premiums and reimbursable medical expenses:

• An ICHRA or a QSEHRA is a company-funded, tax-advantaged health benefit used to reimburse employees for out-of-pocket expenses and/or individual premiums.
• ANY size employer may participate in an ICHRA. Only companies with fewer than 50 employees can sponsor a QSEHRA
• No maximum amount for reimbursements on ICHRA, but annual cap of $5150/$10,400 (single/family).
• Some HRA’s are available to employers with both group health plans and individual plans.
• Multiple classes allowed – giving employers flexibility to offer different amounts based on  Job class, full or part-time status, coverage type and age.
• Offering an ICHRA counts as an offer of coverage under the ACA employer mandate.

Self-Funded Plan Administrators (SFPA) is a TPA specializing in Flex plan administration and self-funded benefit plans.

To learn more contact Doug Helser at 614-834-6624 today or click here.