You can go some way toward meeting the Affordable Care Act (ACA) health care reform law’s requirements that your group plan provides minimum value and is affordable by setting up health reimbursement accounts (HRAs) or health flexible spending accounts (FSAs) for employees.
But according to new guidance, these accounts must be integrated into your group health plan. The guidance is effective for plan years beginning in 2014, but you may apply it to earlier plan years. (Notice 2013-54, IRB 2013-40)
Health reimbursement accounts
HRAs are considered group health plans, so they must meet the ACA’s market-reform requirements, including not imposing annual limits and providing free preventive care. HRAs don’t have to meet the market-reform requirements if they’re integrated into a group health plan that does. HRAs that are integrated into a group plan don’t have to share the same plan sponsor, the same plan document or file a sing...(register to read more)