October 5, 2013
Which Health Reimbursement Accounts (HRA) are allowed in 2014?
After reviewing the guidance issued from the Internal Revenue Service and Department of Labor from September 13, it’s clear that Health Reimbursement Arrangements (HRAs) are indeed affected by the Affordable Care Act in several ways.
So… Exactly which HRAs are allowed in 2014? And which aren’t? Let’s break it down:
- Acceptable:
- Integrated HRAs where participation in the HRA also requires participation in an employer-sponsored health plan
- Integrated HRAs where participation in the HRA also requires participation in another employer-sponsored health plan (i.e. a plan that is sponsored by a spouse’s employer)
- Stand-Alone HRAs for dental or vision expenses
- Stand-Alone HRAs for retirees only
- Unacceptable:
- Stand-Alone HRAs for IRS Section 213 expenses when the employer does not sponsor any major medical plans
- Stand-Alone HRAs for reimbursement of individual health insurance plan premiums
Thanks to our friends at Employee Benefits Corporation for the clarification!
