New rules to shake up health market

The US department of health and human services, the department of labor and department of treasury issued a final ruling mid-June to expand the use of HRAs by employers. This expansion will fund employee premiums in the individual health insurance market effective January 1, 2020.

The new ruling provides an alternative to employers who may be facing the ultimatum to either provide benefits or cancel coverage. It allows employees to pay for the health insurance of their choice and be reimbursed by their employers tax-free, according to a report by Newsmax.

The Trump administration said expanding HRAs will increase competition among insurance companies, reduce healthcare costs and, most importantly, help small businesses provide employees with more choices for healthcare.

“An estimated 11 million Americans will now choose their own plans with the help of the HRAs,” US president Donald Trump said.

Critics said to media vehicles that the new rule encourages people to buy inexpensive health insurance plans, which don’t cover pre-existing conditions, among other factors.