Introduction


Introduction

In June 2019, the IRS, DOL, and HHS jointly issued regulations that expand the permitted use of HRAs beginning on or after January 1, 2020. The regulations bring significant changes to the HRA rules by establishing two new types of HRAs that are available to employers of any size, the individual coverage HRAs (ICHRAs) and excepted benefit HRAs (EBHRAs). An Individual Health Reimbursement Arrangement (ICHRA) is the newest type of a Health Reimbursement Arrangement (HRA) that allows employers to provide tax free reimbursements to employees who purchase individual health insurance policies.