Concerns Rise Over Individual Coverage HRAs

| posted in Blog, Newsletter

Employers, health insurers, regulators and hospitals are all raising concerns about the Trump administration’s rules issued last year that allow employer-funded health reimbursement arrangements (HRAs) that employees can use to purchase health plans on the open market, called Individual Coverage HRAs (ICHRA). The rules continue to receive pushback from small business groups, insurers, regulators and others, who say that employers who want to go this route are facing a bureaucratic nightmare. One of the biggest concerns is that employers will use the opportunity to move older and sicker workers from their group health plans to exchanges, in order to reduce…
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Trump’s New Orders and the Effect on Group Markets

| posted in Blog

After months of failed efforts by Congressional Republicans to eliminate the Affordable Care Act, President Trump has stepped in with two sweeping changes that will likely reverberate throughout the health insurance system. The main order he issued immediately eliminates subsidies that are paid to health insurers that participate in government-run exchanges to reduce deductibles and copays for lower-income customers. While some pundits say the move will create chaos in the individual market, they differ on the likely fallout for group policies. But Trump did sign two other orders that will have a more direct effect on the group market over time:…
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Breaking News: POTUS Signs Executive Order on Healthcare

| posted in Blog

This morning, President Trump signed an Executive Order intended to improve access, increase choices and lower costs for healthcare. Below is a brief summary of what we know so far. Directs the Labor Secretary to consider regulations/guidance – within 60 days – expanding Association Health Plans, for the purpose of allowing employers in the same line of business anywhere in the country to join together in offering healthcare coverage to their employees. This potentially allows employers to form AHPs through existing organizations, or create new ones for the express purpose of offering group insurance. This could lead to the sale…
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Consumer-driven Health Plans Confuse Enrollees

| posted in Blog

As more employers are moving their workers into consumer-driven health plans (CDHPs), a new study has found that many employees don’t understand how such plans and their moving parts work. The report found that there is widespread misunderstanding among enrollees in CDHPs about the health savings accounts (HSAs) or flexible spending accounts attached to those plans and health reimbursement arrangements (HRAs). This is an increasingly important issue that needs to be addressed by employers as CDHPs and reimbursement accounts quickly gain traction. The “Acclaris Consumer Education Survey” of health industry professionals found that: • 64.5% of health industry professionals rated…
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