New Excepted Benefit HRA will be available January 1, 2020!

New flexibility in how employers fund health coverage through HRAs

The primary intent of the Excepted Benefit HRA (EBHRA) is to allow for the reimbursement of COBRA premiums, short-term medical plan premiums, dental and vision expenses. This new status as an excepted benefit means that the employee who is covered under the EBHRA is not considered enrolled in ‘minimum essential coverage’ and would not be precluded from receiving a premium tax credit on an Exchange. Annual reimbursement limits will be capped at $1,800 (adjusted for inflation). With the EBHRA, the employer might want to offer an additional separate HRA that only provides vision and/or dental benefits (which are themselves excepted benefits). This would allow participants to utilize the $1,000 EBHRA limit, plus have additional funds available for vision and dental expenses.

To learn more about this product, call our HRA expert, Naomi at (320) 214-2923.


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