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NASE Pushes for Greater Use of HRAs

NASE, a long standing champion, of health reimbursement arrangements (HRAs), requested the the Departments of Labor, Health & Human Services, and Treasury, rescind guidance that was issued in 2015 the severely restricted how small businesses use HRAs. 

In the letter, NASE and allies state:

"As you know, the previous administration ruled that HRAs are health plans, subject to certain market rules established by the Affordable Care Act. Because HRAs do not meet these market rules, they trigger outrageous and unsustainable fines on the employers ($100 per day, per employee – totaling $36,500 over the course of the year) offering this type of financial assistance for health care costs to their employees. Of course, HRAs do not constitute insurance, but rather to allow tax-preferred resources to purchase insurance and cover other qualified out-of-pocket health spending. Businesses can ill-afford, and should not be expected, to be penalized for providing voluntary assistance to their employees for qualified health care expenses, with or without the coverage of a Qualified Health Plan."

NASE continues to work with partners and the Administration to ensure that the self-employed and micro-business owners are able to access HRAs to help cover the costs of health care. 

Read the full letter- NASE Champions HRAs

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