The CMS HRA team would like to share two new guidance materials that are relevant to individual coverage HRAs.

The IRS recently published TD 9949 in which they have clarified the application of the employer shared responsibility provisions and certain nondiscrimination rules to health reimbursement arrangements and other account-based group health plans integrated with individual health insurance coverage or Medicare, including individual coverage HRAs.

The U.S. Equal Employment Opportunity Commission published a Commission Opinion Letter: Individual Coverage Health Reimbursement Arrangements (ICHRA) under the ADEA. This letter offers additional clarification on whether an employer may sponsor an individual coverage HRA that offers its employees a defined contribution for the purchase of an age-rated individual major medical health insurance policy without violating the Age Discrimination in Employment Act of 1967 (ADEA).

As always if you have any questions about this update please reach out to your Total Benefit Solutions Inc account manager at (215)355-2121.