ACA Plans and HRAs

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Good afternoon,

We currently have three full-time employees.  We have an offer out to someone who will be the only employee who needs employer-provided health insurance.  If we direct her to healthcare.gov, have her select a plan, and then cover the cost for her, can we also adopt an HRA?  And then fund the HRA with employer dollars, for her benefit?

 

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Posted by Randy
Asked on September 29, 2022 4:22 pm
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A typical HRA can not be used to reimburse employees who are not covered by a group insurance policy.  Restrictions implemented as part of the Affordable Care Act prohibit that.  Your situation might be appropriate for the newer ICHRA's.  You can contact our office for more information about the rules applicable to those plans.  They are not right for every group but your situation sounds like a possible fit.  Alternatively, if they employee in question was to purchase an HSA qualifying High Deductible Health Plan through healthcare.gov, your organization could make tax exempt contributions to her HSA Account on her behalf.   That may accomplish what you were trying to do most efficiently.

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Posted by Trey Tompkins (Questions: 2, Answers: 32)
Answered on October 4, 2022 9:46 am
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