Tag Archives: health reimbursement accounts

Administration proposes a new employee coverage option for businesses

Joanne Kenen

About Joanne Kenen

Joanne Kenen, (@JoanneKenen) the health editor at Politico, is AHCJ’s topic leader on health reform and curates related material at healthjournalism.org. She welcomes questions and suggestions on health reform resources and tip sheets at joanne@healthjournalism.org. Follow her on Facebook.

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