Some employers have contemplated using a Section 105 plan to reimburse for premiums or out-of-pocket medical costs for employees moving to an ACA exchange but the market reform rules on HRA’s and other Section 105 medical reimbursement plans effectively prohibit these arrangements unless coverage is limited to excepted benefits such as dental and vision and the employer offers a group health plan.
On September 13, 2013, the IRS published (Notice 2013-54) and the Department of Labor (DOL) released (Technical Release 2013-03) to give guidance on Health Reimbursement arrangements (HRAs), flexible spending arrangements (FSAs), employer payment plans (EPPs) and employee assistance programs (EAPs).
