Attention: Do you have clients with less then 100 employee participation on Ancillary plans?

The official report regarding the proposed HRA changes for small businesses is below. It is great news for agents that have clients with a employee participation of less then 100.

WASHINGTON, Oct. 24 — The Small Business and Entrepreneurship Council issued the following news release:

On October 23, the Department of Labor issued a proposed rule on health reimbursement accounts (HRAs) that provides more flexibility for their use among small businesses. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan said this type of flexibility is exactly what small businesses need to offer and continue coverage for their employees.

“The Administration continues to produce a host of rulemakings and policy initiatives that will give entrepreneurs and small businesses more affordable and flexible options for health coverage. The proposed rule on HRAs is no exception. The proposal will allow for more flexibility in the use of HRA funds, which vastly improves this important tool for small businesses. SBE Councilappreciates the work of the Administration in developing more practical and affordable options that will help cover more people employed by small businesses, and improve the competitiveness of these firms,” said Kerrigan.

Under the proposal, small businesses would be allowed to use HRA funds to provide offsets for premiums purchased by their employees in the individual market. Current rules in Obamacare do not allow employers to provide this type of financial support for employees. Employers who offer traditional group coverage would also be allowed to provide an HRA of up to $1,800 per year (indexed to inflation) to reimburse an employee for certain qualified medical expenses, including standalone dental benefits and premiums for a short-term health insurance plan for those employees who choose not to participate in the traditional coverage option offered by an employer.


Full Regulation proposed changes

Fact Sheet: HRA Proposed changes 2018