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Home Illinois News

How Trump’s New Rule Aims to Expand Health Coverage and Lower Costs

Illinois Review by Illinois Review
October 29, 2018
in Illinois News
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More health care options coming. Robert Moffit details a new regulatory change by the Trump administration that could help those in small group plans:

The proposed rule, jointly developed by the Department of Health and Human Services and the Treasury Department, would allow employer-sponsored health reimbursement accounts to fund the purchase of individual health insurance on a tax-free basis.

Today, workers and their families can use tax-free health reimbursement accounts to offset medical expenses, such as out-of-pocket medical costs. Under the new rule, workers and their families could use employer contributions to the accounts to buy health insurance on their own.

This opportunity is particularly valuable for workers employed by small business owners who cannot

afford to offer standard group health insurance, but who could afford to help offset the premium costs of their employees’ individual coverage.

Treasury Department officials estimate that the new rule could encourage as many as 800,000 employers to sponsor health reimbursement accounts, or HRAs, to fund individual coverage for more than 10 million workers.

[Robert Moffit, “How Trump’s New Rule Aims to Expand Health Coverage and Lower Costs,” October 24, The Daily Signal]

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