The administration is proposing a regulation that would create a new way for employers to provide health coverage for employees. This proposal would give millions of workers and their families more control over their health care. It also holds the promise of more-efficient health-care spending, expanded business growth, and higher wages.
The proposed regulation seeks to accomplish this by expanding Health Reimbursement Arrangements. HRAs provide employer-funded reimbursements, which employees can use for health-care expenses. Reimbursements under an HRA do not count as taxable income.