The Trump administration issued a proposed rule that would allow workers in large companies to use employee-provided tax-exempt health reimbursement arrangements (HRAs) to help pay premiums for individual health insurance.
The goal, according to administration officials, is to empower employees to make their own decisions regarding the health care they choose to purchase. Rules imposed under President Barack Obama prevented employers from covering medical costs tax-free via HRAs, declaring they would not meet the federal government’s mandate requiring companies with more than 50 full-time employees to provide health insurance covering all items the Obama administration deemed “essential.”
