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Post-ACA and 2018 HRA Plan Design Options
Executive Summary for Accountants and Employers: 2018 HRA Plan Design Options
Health Reimbursement Arrangements (HRAs) survived the Tax Cuts and Jobs Act intact, much as they did the Affordable Care Act once the QSE-HRA was returned to us in late 2016. Here is an executive summary of the various types of HRA plan design options available to employers in 2018.
Section 105 HRA Plan for 1 Employee or Spouse – This HRA plan survived nearly all Obamacare Affordable Care Act (ACA) mandates. The ACA does not consider a one-employee plan a group so it does not come under ACA jurisdiction. These plans can be set up with or without an annual limit. See www.Core105.com
Qualified Small Employer HRA – Signed into law in December 2016, this HRA has a $5,050 individual/$10,250 family annual limit and does not have to be integrated with an employer-sponsored group health insurance plan. It can reimburse non-group ACA exchange subsidized or discounted premium individual health insurance; however, QSE-HRA law states that any employee receiving an annual QSE-HRA benefit must report it on the ACA exchange, where the QSE-HRA benefit will reduce the subsidy dollar for dollar. See: /qsehra/
HRA Plans for 2+ Employees – After 2014, ACA mandates required all HRA Plans for 2+ employees to be integrated with an employer-sponsored group health insurance plan, usually a high-deductible health plan. The HRA picks up a portion of the higher deductible to help employers reduce the overall group health premium. Some employers use this type of HRA integrated with a traditional group health insurance policy to make employee benefits even richer by eliminating all or most of the out-of-pocket expenses associated with group health coverage. See www.CoreHRA.com
Excepted Benefit HRA – The only exception to the ACA requirement that a 2+ employee HRA be integrated with group health insurance is an HRA that pays only “Excepted Benefits.” This type of HRA includes dental, vision, chiropractic, and several types of supplemental insurance premiums, basically all of the allowed non-medical expenses called Excepted Benefits. See www.CoreHRA.com
For more information to help you decide which HRA plan design option is best for you, send us an inquiry or call our friendly, knowledgeable staff at 1-888-755-3373.
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 Click to download Core 105 brochure and forms. |
 Click to download Core QSE-HRA brochure and forms. |
 Click to download Core HRA brochure and forms. |
 Click to download Core HRA employer guide. |