Trump Administration Finalizes Expansion of Health Reimbursement Arrangements

Trump Touts Administration’s Expansion Of HRAs Win For Small Business
– FierceHealthcare

Manatt’s Michael Kolber, a partner with Manatt Health, spoke with FierceHealthcare on the Trump administration’s expansion of health reimbursement arrangements.

According to FierceHealthcare, the administration finalized a new federal rule on June 13 that would allow employers more opportunities to offer health reimbursement arrangements (HRAs), in which they would offer a stipend to employees to help cover the cost of insurance on the individual marketplace.

Kolber told FierceHealthcare that the administration’s projection—that about 11 million people from 800,000 employers will take advantage of HRAs in 2020—“underscores that the target for the policy is smaller employers.”

He also noted that allowing HRAs to have the same tax benefits as traditional employer-sponsored health plans could draw interest from other types of employers.

“I think that really opens the doors for a lot of employers to think about doing this,” Kolber said.

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