On Thursday, the Trump administration finalized a rule that helps Americans and small businesses by offering a new healthcare option for employees. The Department of Health and Human Services, Department of Labor, and the Treasury Department released the Health Reimbursement Arrangement (HRA) final rule.
This rule, which is the final component of President Trump’s Executive Order on promoting Healthcare Choice and Competition, allows employers to offer their employees tax-preferred funds, which they can use to cover all or a portion of the cost of health insurance that workers purchase in the individual market, subject to certain conditions.
This arrangement, called an Individual Coverage HRA, will provide hundreds of thousands of employers, including many small businesses, a better way to provide health insurance coverage, and will in turn offer millions of hard-working Americans more options for health insurance coverage.
In addition to lowering costs and expanding options, these plans will solve the problem of portability, allowing an employee to switch jobs without fear of losing affordable coverage that they like or worrying about preexisting condition coverage.
I applaud the president for seeing this through and keeping another campaign promise.
Congressman Daniel Webster represents The Villages in the U.S. House of Representatives.
