Tag Archives: health reimbursement accounts

Administration proposes a new employee coverage option for businesses

About Joanne Kenen

Contributing editor to Politico Magazine and former health care editor-at-large, Politico, Commonwealth Fund journalist in residence and assistant lecturer at Johns Hopkins Bloomberg School of Public Health.

Photo: Rachel via Flickr

HHS has proposed a new rule that would make it easier for employers to help their workers cover medical expenses by using health reimbursement accounts (HRAs).

The proposal would allow employers to subsidize employees who buy their own health insurance either on or off the Affordable Care Act marketplaces. Employers who cover their workers — and that’s been more stable than many expected under the ACA — could give employees up to $1,800 a year (indexed to inflation) to finance HRAs, which are tax-advantaged accounts. That would go toward out-of-pocket costs. Continue reading