Bloomberg Tax
Jan. 13, 2021, 8:14 PMUpdated: Jan. 13, 2021, 9:59 PM

IRS Offers Clarity on Health Reimbursement Plans Under ACA (1)

Fawn Johnson
Fawn Johnson
Editor

The IRS issued final rules Wednesday that clarify employers’ responsibilities under the Affordable Care Act when they offer employees help to buy Obamacare plans.

The final rule (T.D. 9949; RIN 1545-BP17) says employees that are enrolled in Obamacare plans through a health reimbursement arrangement (HRA), or are eligible for an HRA that provides ACA-required benefits, can’t seek premium tax credits that generally help lower-income people afford the plans.

The ACA’s employer mandate requires that certain large employers offer affordable coverage that meets the minimum coverage requirements under the health law, or make a payment to the Internal Revenue ...