New option for offering workers tax-free benefits A new final rule from the Trump administration will give employers more options for providing nontaxable health benefits to their employees. The rule allows employees to use funds from a new individual coverage health reimbursement arrangement (HRA) to purchase third-party healthcare coverage. HRA advantages Allowing employers to use HRAs to cover workers’ premiums may be more cost-effective than traditional group health plan in some cases, while still allowing employees to pay for their health care tax-free. It’ll also be an excellent way for companies to help lower workers’ healthcare costs if the Affordable Care Act (ACA) is reversed and employers no longer have to offer coverage. While these arrangements will mostly benefit small employers, large employers may also take part, as long as the employer contribution meets current ACA affordability standards. Along with the new individual coverage HRS, the rule also establishes a new excepted benefit HRA that lets companies reimburse workers for copays, deductibles and other expenses. More info: