Increasing Health Coverage through HRAs Act of 2021

Increasing Health Coverage through HRAs Act of 2021

This bill provides statutory authority for the Department of the Treasury, the Department of Labor, and the Department of Health and Human Services rule dated June 20, 2019, which provides for the integration of health reimbursement arrangements and other account-based health plans with individual health insurance coverage or Medicare.

Bill 117 HR 4123, also known as the Increasing Health Coverage through HRAs Act of 2021, aims to expand access to health coverage for individuals and families by allowing employers to offer Health Reimbursement Arrangements (HRAs) to their employees. HRAs are employer-funded accounts that employees can use to pay for qualified medical expenses, including premiums for health insurance.

The bill seeks to make it easier for small businesses to provide health coverage to their employees by allowing them to offer HRAs as an alternative to traditional group health insurance plans. This would give employees more flexibility in choosing their own health insurance plans that best suit their needs.

Additionally, the bill includes provisions to ensure that HRAs are portable, meaning that employees can take their HRA funds with them if they change jobs. This would help to address the issue of job lock, where individuals feel trapped in their current job because they are afraid of losing their health insurance coverage. Overall, the Increasing Health Coverage through HRAs Act of 2021 aims to increase access to affordable health coverage for individuals and families by expanding the use of HRAs as a flexible and portable option for employers to offer to their employees.