Under the Obama administration, this was legislated to be a violation of the ACA. Until January 1,2020 ” employers are still prohibited from reimbursing premiums for individual coverage. .” Recently President Trump sing an executive order, and Health and Human Services, Labor and Treasury have announced the following changes:

Beginning on January 1, 2020, two new Health Reimbursement Arrangements are created.

The first, the individual Coverage HRA, allows any size employer to give employees cash for major medical coverage in lieu of group coverage. Brokers can help provide shopping assistance to your employees to assist in this process.

The second, the Excepted Benefit HRA, allows employers to pay for copays, deductibles, etc even if the employee is not on your health insurance plan.

More to follow on these as the regulations are fleshed out.