Impact of ICHRAs on ACA

Beginning Jan. 1, 2020, some employers will be able to offer individual coverage health reimbursement arrangements (ICHRAs) to help employees pay for health insurance.

As a result, on Sept. 30, 2019, the Internal Revenue Service (IRS) published proposed regulations on how the following federal requirements will affect ICHRAs:

  • The Section 4980H employer shared responsibility rules under the Affordable Care Act (ACA); and
  • The federal nondiscrimination requirements in Internal Revenue Code (Code) Section 105(h).

Comments on the proposed rule will be accepted until Dec. 30, 2019.  Taxpayers generally may rely on the guidance provided in the proposed rule prior to a final rule being issued.

Contact us today to learn more about the proposed rule.

Impact of ICHRAs on ACA