A New Employer Health Plan Option for 2020
As employers continue to struggle with the challenge of providing and affording health care coverage for their employees, the IRS recently issued new rules to make Health Reimbursement Accounts (HRAs) more flexible, practical and available to a broader group of employers and employees.
Referred to as an Individual Coverage HRA (or ICHRA), employers now have the opportunity to bridge the gap between providing insurance and paying for insurance.
These new rules take effect January 1, 2020, and are worthy of consideration as employers consider their coverage and benefit plans for employees next year. The ICHRA could be a boost in attracting and retaining employees in a tight labor market.