How Do Premium Tax Credits Work with an HRA? скачать в хорошем качестве

How Do Premium Tax Credits Work with an HRA?

What do you do if you qualify for a premium tax credit and you have an HRA allowance? Can you use both to save on your healthcare? The answer depends on which type of HRA you have. This video outlines how to coordinate your premium tax credit with a qualified small employer HRA (QSEHRA) and an individual coverage HRA (ICHRA). One of the most valuable features of a health reimbursement arrangement (HRA) is its ability to reimburse employees for individual health insurance policies tax-free. Unlike group health insurance, HRAs give employees the freedom to choose from a wider variety of insurance policies and customize them to fit their personal needs. Young, healthy employees may choose a high-deductible health plan to save money, while employees with a specific health issue may purchase a policy with more extensive healthcare coverage. The employer’s role is merely to set up the HRA and then reimburse the expenses with the employee’s monthly HRA allowance. However, with the advent of the Affordable Care Act (ACA), this system grew more complicated. The ACA introduced to health insurance shoppers the premium tax credit, also known as a health insurance premium subsidy, to help discount health insurance purchased on the health insurance marketplaces. Premium tax credits are a boon to individual health insurance shoppers, but they require extra effort to coordinate with an HRA. Because both HRA allowances and premium tax credits pay for health insurance premiums, employees must account for both. This plays out differently depending on which type of HRA is being offered. Read more on our blog: https://www.peoplekeep.com/blog/hra-a... #PremiumTaxCredits #TaxCredits #InsuranceSubsidies #HRAs #PeopleKeep