EBP2011. The Changing Landscape of Account-Based Health Plans

This session will cover changes to health reimbursement arrangements (HRAs) and health savings accounts (HSAs) that may lay the groundwork for an emerging shift from defined benefit to defined contribution in the health care space.  Specifically, we will discuss the new IRS, DOL, and HHS rules governing HRAs, effective for 2020 plan years, that allow these arrangements to be used more broadly and flexibly by employers.  We will identify compliance concerns expected to arise as these new arrangements are implemented.  We will also discuss changes to permissible high-deductible health plans associated with HSAs to understand how these arrangements are permitted to cover additional medical items without cost-sharing, and we will compare FSAs with other account-based arrangements.  Finally, we will consider what the future is for these account-based arrangements.

Learning Objectives:

• Identify when and how HRAs may be offered to employees
• Recognize what medical items may be offered without cost-sharing in a high-deductible health plan