Posts Tagged: HRA

Pre-Tax Individual Medical Coverage Dealt a Significant Blow

in Affordable Care Act, Health Benefits, Tax Issues

On Friday last week, Treasury, DOL and HHS issued new guidance with respect to employers who sought to drop group coverage in exchange for individual policies. The guidance issued as IRS Notice 2013-54 and DOL Technical Release 2013-03 discussed the use of health reimbursement arrangements, premium reimbursement arrangements and other employer payment plans to pay for individual policy premiums. Since the passage of the Affordable Care Act, and the rise of the employer mandate in 2014 (now 2015), some employers were looking toward dropping group coverage and then providing their employees with cash to offset the cost of individual policy… Continue Reading