The U.S. departments of Labor, Health and Human Services and the Treasury issued a final rule on June 13 that expands the usability of health reimbursement arrangements (HRAs). The rule is effective for plan years beginning on and after Jan. 1, 2020.

This final rule was issued in response to a 2017 executive order directing federal agencies to expand access to HRAs.  Under the current regulations, HRAs cannot reimburse employees for the cost of individual health coverage.