Final Rule On Health Reimbursement Arrangements Could Shake Up Markets

On June 13, 2019, the Departments of Health and Human Services, Labor, and Treasury issued a new final rule to expand the use of health reimbursement arrangements (HRAs) by employers to fund premiums for their employees in the individual health insurance market. The final rule reverses prior federal guidance by allowing HRAs to be used to fund both premiums and out-of-pocket costs associated with individual health insurance coverage. The Departments also released new frequently asked questions, model attestations, and model notices.

The final rule is largely similar to the proposed rule, which received more than 500 comments from a stakeholders that include state regulators, insurers, and employers, brokers, and benefit advisors. The final rule’s major significant changes focus primarily...