The president wants to allow for health reimbursement arrangements to be used for non-group coverage to employers of all sizes. If this happens, this is as an industry-redefining disruption.
As of Nov. 20, small employers looking to offer tax-free plans to cover workers’ insurance premiums and healthcare expenses will have to follow extensive new compliance rules.
From CSR payments to HRA funding, proposed reform’s impact on employees may be truly disruptive to advisers by changing focus from insurance sales to financial planning.
Companies have consistently rejected the idea of terminating their health plans and sending employees to buy their own coverage, but attitudes may be shifting.
It will be months until some of the president’s proposals, such as expanded use of HRAs, could be implemented, but brokers should educate clients now, adviser Mark Johnson says.
Under an executive order signed Thursday, small employers would potentially be able to band together from across the country to create association health plans.
President Trump’s promised repeal of the Affordable Care Act is underway, and the 21st Century Cures Act is likely helping it progress, says adviser Craig Hasday.
Recent regulations by the EEOC approved in 2016 have begun enforcement and could cause conflict for some employers and brokers, says attorney Brenna A. Davenport.
