Under the new law, an eligible small employer who does not otherwise offer health benefits to its employees through a group plan may provide a stand-alone qualifying HRA to its employees pursuant to the terms described above. Small employers who historically offered stand-alone HRAs to their employees and could no longer do so under the ACA rules may wish to offer the HRA benefit to its employees again, given that the benefit is generally nontaxable to employees (although, note above that reimbursements provided under the stand-alone HRA may be taxable to an individual who does not maintain minimum essential coverage). Employers should keep in mind that to qualify, pursuant to the requirements summarized above, the HRA benefit would be required to be offered to all employees (with very limited exceptions).
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