White House loosens HRA rules for small businesses

The Trump administration is expanding options for employers to use special accounts to help workers buy their own health insurance, upgrade job-based coverage or choose low-cost plans with limited benefits, officials said Thursday (Source: “White House Expands Health Accounts Aimed at Small Firms,” Associated Press via U.S. News, June 12, 2019).

The tax-free individual accounts are called "health reimbursement arrangements," or HRAs, and starting next year employees will be able to use them to buy their own individual health insurance plans.

Employers that offer regular workplace coverage can also set up another type of HRA account — limited to $1,800 a year — that will allow workers to get additional benefits such as dental and vision care. This second type of account can also be used to purchase lower-cost, short-term insurance that comes with limited benefits and doesn't have to cover pre-existing medical conditions.