President Trump recently signed an executive order overturning President Obama’s restrictions on Health Reimbursement Arrangements (HRAs).

HRAs allow employers to provide employees tax-free reimbursement of up to $1,800 for purchasing a health plan on the individual market, thus allowing employers to get out of the health insurance business and employees to purchase health care that suits their needs.

Under Obama, anyone offering an HRA was subjected to fines of as much as $100 per employee per day, or $36,500 per employee per year. President Trump is removing those fines.

Objections have been raised that this will not help a great deal of people, since there aren’t many insurers and some employers may find it complex to offer HRAs. It has been suggested that spouses who work for employers offering HRAs be allowed to combine their HRAs. This is why we must continue to push for more options that give individuals the ability to choose a health insurance plan that meets their needs and puts control of the health care dollar back in the hands of individuals.

Read a detailed description of the rule here.  

Read Ryan Ellis describe how Trump is making Obamacare optional here.