A final rule from the US Department of Health and Human Services (HHS) will expand small employers’ ability to offer Health Reimbursement Arrangements (HRAs), a change that may make it easier for more Americans to purchase health insurance that they don’t receive from their jobs. While it’s still too early to tell if the change will significantly impact patients seen by physical therapists (PTs), APTA’s advice is to keep an eye open, and be aware of the nuances of HRA payment.
The new rule, set to go into effect January 1, 2020, will allow qualified small employers to offer what’s being called an “Individual Coverage HRA” as an alternative to traditional group coverage plans. The idea behind HRAs is that employers provide a monthly tax-free allowance to employees, who can be reimbursed for health care-related expenses up to the allowance limit. The changes set to go into effect next year would permit HRAs to be used to pay for health insurance purchased on the individual market, and allow employers to offer “excepted benefit” HRAs to supplement employer-sponsored insurance—even if the employee isn’t enrolled in the group plan.