Update on Tri-Agency Final Rules on Health Reimbursement Arrangements - Bim Group

Update on Tri-Agency Final Rules on Health Reimbursement Arrangements

On September 30, 2019, the Internal Revenue Service (IRS) published its proposed rules to clarify how the employer shared responsibility provisions and Section 105(h) nondiscrimination rules apply to health reimbursement arrangements (HRAs) and other account-based group health plans that are integrated with individual health insurance coverage or Medicare.

Also, the Centers for Medicare and Medicaid Services (CMS) announced its downloadable tool that gives employers access to specific rate information for the least expensive plan in a certain category (for example, the lowest cost silver plan for self-only coverage offered through the Exchange) based on an employee’s age and geographic location. According to CMS, employers will be able to use this tool to determine whether their offer of coverage through an individual coverage HRA would be considered affordable.

Public comments and requests for a public hearing on the IRS’ proposed rules are due by December 30, 2019.

Because employers may want to offer individual coverage HRAs beginning on January 1, 2020, before the IRS publishes its final regulations, employers may rely on the proposed regulations:

  • Under Section 4980H for periods during any plan year of individual coverage HRAs beginning before the date that is six months following the final regulations’ publication; and
  • Under Section 105(h) for plan years of individual coverage HRAs beginning before the date that is six months following the final regulations’ publication.

The IRS’ proposed rule is described in the Employer Shared Responsibility Provisions and Nondiscrimination sections of this Advisor.

Download the full Compliance Advisor for more information on the final rule.

Updated 9/30/2019




This information is general and is provided for educational purposes only. It reflects UBA’s understanding of the available guidance as of the date shown and is subject to change. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors.

Recent Insights

November 7, 2019
HR Elements, News

HR Elements: How to Handle Pay-History Inquiries —The Right Way

We’ve all been there. You’ve gotten deep into the job interview process, and then you’re face-to-face with the awkward question: would you share your previous salary? Whether the question rears its head in a digital application or during initial in-persons, none of us like answering it. Many people, especially young people, are less committed to […]
Read more
November 6, 2019
Compliance Alert

Compliance Recap – October 2019

  by Deanna Sizemore, Bim Group Director of Compliance October was a relatively quiet month in the employee benefits world. The U.S. District Court for the Northern District of Texas vacated portions of the current rule implementing Section 1557 that prohibit discrimination on the basis of gender identity and pregnancy termination. The U.S. Court of […]
Read more
November 5, 2019
Affordable Care Act (PPACA), Compliance Alert

Update on Nondiscrimination Regulations Relating to Sex, Gender, Age, and More

The Patient Protection and Affordable Care Act (ACA) Section 1557 provides that individuals shall not be excluded from participation in, denied the benefits of, or be subjected to discrimination under any health program or activity which receives federal financial assistance from the Department of Health and Human Services (HHS), on the basis of race, color, national […]
Read more
October 24, 2019
HR Elements, Wellness

HR Elements: 4 Steps to a Pet-Friendly Workplace

If your team is waving goodbye to doggy day-care and the days of leaving furry friends at home, congratulations! The trend of bringing dogs to work started soon after what is widely considered the most influential research on dog-friendly offices, published in the International Journal of Environmental Research and Public Health. Among the many benefits, […]
Read more