HRA card An Individual Coverage HRA is affordable if the “employee’s required HRA contribution” for the month does not exceed 1/12 of the product of the employee’s household income for the taxable year. (Photo: Shutterstock)

New regulations issued by the Departments of Labor, Treasury, and Health and Human Services have expanded the use of health reimbursement accounts (HRAs) by allowing reimbursements for individual market insurance premiums.

These new “Individual Market HRAs” may prove to be game-changers in the employer-sponsored health plan arena, especially with respect to small and mid-sized employers. Before employers adopt a benefit offering that includes Individual HRAs, they should consider the implications on the Affordable Care Act’s (ACA) employer shared-responsibility mandate and on the ability of their employees to obtain a premium tax credit (PTC) on the ACA marketplace.

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