No pre-tax reimbursement for individual insurance under ACA; employee assistance programs OK

HRS Insight

The Obama Administration has released guidance about how the Affordable Care Act (ACA) market reforms apply to health reimbursement accounts (HRAs) and other employer reimbursement programs, certain health flexible spending accounts (health FSAs) and employee assistance programs (EAPs). The new guidance confirms that HRAs cannot be coordinated with individual insurance in order to satisfy the ACA requirements, and generally precludes other pre-tax employer reimbursements of employees’ premiums for individual health coverage. In more welcome news, the guidance clarifies that most EAPs are not subject to the ACA requirements.

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