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New HRA for excepted benefits, choice in health coverage — EBHRA

The new HRA for excepted benefits (EBHRA) provides tax-free reimbursements even if am employee refuses an employer’s traditional group health plan coverage. This gives employees more options in designing the health coverage that works best for them.

New Excepted Benefit HRA (EBHRA) reimburses dental, vision, STLDI, COBRA, and more.

EBHRA — The new HRA for excepted benefits, choice in health coverage

When it comes to building a health benefits package, there is no one-size-fits-all. Employees want flexibility, and smart employers are making that possible.

Employers offering the new HRA for excepted benefits may soon provide employees with reimbursement of eligible medical expenses even when the employee has declined the employer’s traditional group health plan. This means more savings for both employer and employee when workers are able to design their own health benefit package.

Related: How the Excepted Benefit HRA works

What are excepted benefits?

An excepted benefit is a type of health coverage that does not provide comprehensive health coverage with the essential health benefits prescribed under the Affordable Care Act (ACA).

EBHRA reimbursements may include:

  • Limited scope dental and vision insurance;
  • COBRA continuation coverage;
  • Short-term limited duration insurance (STDLI);
  • Cost sharing (co-pays and deductible); and,
  • Long-term care coverage, nursing home care, home healthcare, community-based care, or any combination thereof.

Read the entire final rule, posted on the Federal Register:

Health Reimbursement Arrangements and Other Account-Based Group Health Plans


EBHRA rules

The new EBHRA comes in response to presidential executive order 13813, Promoting Healthcare Choice and Competition Across the United States. President Trump announced the release of final rules on June 14, 2019.

Following are major points in the final rules:

Employer must offer a group health plan

The proposed EBHRA cannot be an “integral part of the plan.” As such, an employer must offer a traditional group health plan with essential health benefits to employees eligible to participate in the HRA; however, the employee does not have to take that insurance.

Employers cannot conditional eligibility on refusal of traditional group health plan

Only employees eligible for the group health plan may participate in the EBHRA but the employer may not require that an employee must refuse the group health plan in order to participate in the EBHRA.

 Limited in amount

Since the HRA for excepted benefits will in itself be considered an excepted benefit, it must be limited in both scope and amount. The proposed limit for the 2020 plan year is $1,800. Also:

  • The amount will be indexed for inflation, and,
  • If the employer allows unused funds at the end of a plan year to rollover to the next, that amount will not be counted toward the annual limit in the new plan year.

Excepted benefits only

The EBHRA cannot reimburse premiums for individual health coverage or group health plan premiums (with an exception for COBRA continuation coverage).

Uniform availability

Participation must be available to all employees in a particular employee classification on the same terms including the same amount.

Compatibility with ICHRA

Since the EBHRA requires the employer to offer a group health plan to employees, and the Integrated Coverage HRA (ICHRA) does not allow an employer to offer a group health plan to employees offered an ICHRA, the two new HRAs are not compatible.

 


Dental, Vision & Other
Excepted Benefits
YOUR WAY

The new EBHRA pays premiums and related expenses for excepted benefits like dental and vision coverage.

And, an employee can participate even if they decline participating in the employer’s group health plan.

It’s all about having health coverage your way – the way that works best for your employees and your business.


The Core EB-HRA Plan Document package is available
for delivery beginning November 15, 2019.

Click below to place your order today, or

click here and we’ll send you a reminder in mid-November.

$199 in PDF via email*

$249 in PDF email* + Deluxe Binder via USPS

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*Basic plan design

No annual fee — Core Documents will notify you when there are sufficient changes in the Code to require amending and restating your Plan. You can amend and update anytime, and only when necessary, which is the most cost-effective way to maintain a HRA Plan.

Fast Service — Most orders placed by 3 PM are returned via email the same day, Monday through Friday. Weekend orders are sent out Monday morning. Plan document packages are processed in the order received. During our busiest months (December, January, and February), the rush order fee (see order form) marks your document to be processed immediately.

Refund Policy: Goods and services provided by Core Documents, Inc. are non-refundable upon receipt. Orders cancelled prior to shipping are subject to a fee to cover the cost of goods and services provided during the review, draft, and preparation of your order.

The Trusted Source of Affordable Benefit Plan Documents for over 20 Years.

Core Documents is the country’s leading provider of cost-effective, tax-saving benefit plan documents for Section 125 Cafeteria plans and Health Reimbursement Arrangements. The Trusted Source since 1997, thousands of satisfied agents and employer groups nationwide rely upon Core Documents for free plan design consulting services, plan document updates, ERISA Wrap SPDs, and administration services.

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