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May 25, 2013

HHS Releases Guidance Exempting Existing HRAs from Applying for Restricted Annual Limit Waivers

Under Health Care Reform, for plan years starting on or after September 23, 2010, health plans may impose only "restricted annual limits" on essential health benefits as defined by Health and Human Services (HHS).  All annual limits are prohibited for plan years starting on or after January 1, 2014.  HHS issued guidance for health plans seeking a waiver of the restricted annual limit for plan years beginning before January 1, 2014.  On August 19, 2011, HHS released guidance exempting all health reimbursement arrangements (HRAs) that were in effect on September 23, 2010, from applying for a restricted annual limit waiver.  This guidance effectively excuses existing HRAs (including stand-alone HRAs) from complying with the restricted annual limit on essential health benefits for all plan years beginning before January 1, 2014

© 2013 McDermott Will & Emery

About the Author

Partner

Amy Gordon is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Chicago office.  She focuses her practice on the areas of welfare benefits, including self-funded and insured health plans. She assists clients in designing and maintaining compliant flexible benefit, life, medical, dental, pharmacy, EAP, educational assistance, disability, supplemental health, severance, Health Savings Accounts, Health Reimbursement Accounts, and other types of welfare plans.  She counsels clients with respect to HIPAA, ERISA and the Internal Revenue Code...

312-984-6931

About the Author

Partner

Jamie A. Weyeneth is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Chicago office.

312-984-6913

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