ACA & HRA's

[Gretel]

I attended a 2-hour seminar on this subject and got some disturbing news. All HRA's, with some limited exceptions, are pretty much not allowed any longer since the beginning of this year with a $100 per day per employee penalty.

One of the exceptions is a biz with one employee only...BUT the plans are now considered Group Health Plans under ERISA. The speaker strongly advised against any self-administration of these plans for the high penalties involved. I thought I share this piece, it surely disturbed me.

[TaxGuyBill]

Just to clarify: HRAs that are not in conjunction with 'regular' health insurance are subject to the penalty.

If an employee has both 'regular' health insurance and an HRA from the same employer, it is perfectly acceptable.