H&W: HRAs Under ACA

FAQ Part XI from the Department of Labor has clarified the status of stand-alone HRAs under the ACA.  In general, an employer’s HRA will not be subject to the ACA’s lifetime and annual limits if it is integrated with the employer’s ACA-compliant group health plan.

An HRA is not considered “integrated” if it is available to employees who are not covered by the primary group health plan. This includes employees who are eligible for the employer’s primary coverage, but elect not to take it.  In addition, an HRA that is used to purchase coverage on the individual market is not considered integrated. Certain transition relief is available to employers with HRAs in effect on January 1, 2013.  (See theCompliancedashboard reference material on Lifetime and Annual Limits for more information

Employers with HRAs should review their plan design to make sure they will be considered integrated with their group health plans.