Trump administration to expand health insurance options for small businesses

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The Trump administration expanded health reimbursement arrangements June 13 in a final rule that aims to help small businesses provide insurance coverage.

The final rule will expand health insurance coverage for an estimated 800,000 previously uninsured people, according to the administration.

The rule takes effect in January 2020. It will allow employers to use tax-exempt HRAs to give workers funds to buy health insurance in the individual market. The rule follows an executive order from President Donald Trump in 2017 that aimed to increase choice in the health insurance market.

"The policy creates an exciting new opportunity for employers — especially small employers that might not offer coverage today — to provide employees tax-preferred funds to help buy coverage on the individual health insurance market. Making this option available to employers will significantly increase coverage across America and reduce the number of uninsured," CMS Administrator Seema Verma said in a statement.

 

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