Daily Signal:
A final rule on health reimbursement arrangements set to take effect in August could expand opportunities for American workers and their families to attain affordable health care, increase access to health care for employees of small businesses, and create new competitive market forces that will increase coverage charges for all.
The rule, which would loosen many of the restrictions that have limited the scope and utility of health reimbursement arrangements, represents a large step in shifting the rigid defined-benefits insurance structure toward a defined-contributions structure that allows patients to direct their health care spending.
“We want more decision-making and power in the hands of the consumer and worker over how to finance their health care,” said Brian Blase of the National Economic Council in summarizing the goal of the rule change.
A health reimbursement arrangement is an employer-based, tax-advantaged account that allows employees to pay for their health care needs using funds deposited by their employer. Employees can then use the funds to pay for health care expenses as agreed upon with the employer in the terms of the arrangement. read more