Change to Regulation of Small Employer Health Plans

On Aug. 3, 2018, Commissioner of Insurance Sullivan issued Bulletin #B-0013-18, which discusses the application of state insurance law to employer individual health policy reimbursement that isn’t done using a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). As background, the federal Cures Act created QSEHRAs, which allow employers to reimburse employees for the cost of individual health insurance under limited circumstances.

This bulletin reminds employers that offer HRAs that pay for employees’ individual health insurance, but don’t use QSEHRAs, that those HRAs are still regulated as a group health plan under Texas Insurance law and must meet the requirements under those laws.

Keep in mind, though, that the ACA already prohibits employers from reimbursing the cost of individual health plans, so Texas employers already shouldn’t have a plan design that provides for individual coverage reimbursement unless that HRA is a QSEHRA.

Texas Department of Insurance. “Bulletin #B-0013-18.” »