Insurers Caution Against HRAs for Short-Term Health Plans

The health insurance industry cautioned the Trump administration against allowing health reimbursement accounts (HRAs) to be used to purchase short-term limited duration health plans (STLDHPs), in comments submitted regarding a proposed rule change.

Both America’s Health Insurance Plans (AHIP) and the Blue Cross Blue Shield Association (BSBCA) said that the change would allow unbalanced risk pools, as healthier employees might opt for a combination of an HRA integrated with a short-term plan. Such a change would cause negative effects through the insurance industry nationwide, they said.

Comments to the administration on the proposed rule, announced in October 2018, were due last Friday.

AHIP and BCBSA said that the administration should protect nondiscrimination “guardrails” by requiring individuals participating in an HRA to continue to be enrolled in comprehensive individual health insurance or through group coverage offered by an employer.

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