New Proposed Regulations for HRA Plans
Recently the United States Departments of Labor, Health and Human Services and the Treasury announced important regulatory FAQs about the implementation of various provisions of the Patient Protection and Affordable Care Act (PPACA), including clarification regarding the use of HRAs to purchase coverage on the individual market. The most important of these FAQs states that federal regulations will be issued that prohibit use of so-called standalone HRAs for the purpose of funding payment of premiums for individual insurance policies.
In response to this guidance HR Concepts is in the process of implementing the plans and technology to support both HRA-based and Cafeteria Plan-based Defined Contribution models. HR Concepts is working diligently to offer a compliant defined contribution solution for our clients and participants. We will provide additional updates in the coming months as it relates to these new plan offerings.