Final regulations: Employer shared-responsibility provisions, health reimbursement arrangements

Employer shared-responsibility provisions

The IRS today posted to its website a version of final regulations (T.D. 9949) concerning the application of the employer shared-responsibility provisions and certain nondiscrimination rules regarding health reimbursement arrangements (HRAs) and other account-based group health plans.

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Read final regulations [PDF 400 KB] (78 pages)

The version of the final regulations released by the IRS today includes this statement:

This document has been submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version of the final rule released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

Regulations were proposed in September 2019 to:

  • Clarify the application of the employer shared-responsibility provisions and certain nondiscrimination rules to HRAs and other account-based group health plans integrated with individual health insurance coverage or Medicare (individual coverage HRAs)
  • Provide certain safe harbors with respect to the application of those provisions to individual coverage HRAs
  • Facilitate the adoption of individual coverage HRAs by employers by permitting taxpayers to rely on the proposed regulations

Read TaxNewsFlash

The preamble to the final regulations released today states that the proposed regulations are adopted with certain modifications. 

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