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· Writing for The Heritage Foundation, Robert E. Moffit discusses how a new rule created under the Trump administration will improve the healthcare market by expanding health plan options.
· How will this affect healthcare costs and premiums? Will this improve options for workers?
The Trump administration unveiled this week a final rule that will dramatically improve workers’ ability to access health insurance of their choice.
The new rule will significantly expand the permitted uses of tax-advantaged health reimbursement accounts, or HRAs.
Today, these special employer-based accounts, in which funds can be rolled over year to year, are used by employees to cover medical expenses, including out of pocket costs and services uncovered by traditional insurance. But with this rule, for the first time in the history of these tax-free accounts, the administration would allow employees to use them to pay premiums for individual health insurance.
This change will not only expand health insurance coverage, but will also lower health care costs.
The rule is the product of the combined efforts of the U.S. Departments of the Treasury, Health and Human Services, and Labor. It will take effect on Jan. 1, 2020.
Read the full article about the healthcare market by Robert E. Moffit at The Heritage Foundation.