Q: We are a small school with 20 employees, and we fund a Health Reimbursement Arrangement (HRA) for employees on our health insurance plan to help pay for the deductible. I was told that we have to file reporting forms because of this arrangement. Based on our size, I thought we were not required to report. Did I receive bad information?
A: You are correct and did receive bad information, but it was an honest mistake.
The IRS released draft instructions for forms 1094/1095-B on August 8, 2015. The draft indicated that if you have an insurance company paying for your group health insurance claims and you are funding the HRA, then you would report the HRA members and their dependents on the 1095-B form, no matter how large or small your organization.
However, with the release of the finalized instructions on September 17, the IRA eliminated this HRA reporting requirement. You may continue following your current policy and breathe easy!
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