Although the retiree plan exception does not specifically state that it applies to plans that cover retirees only, it has generally been interpreted to apply to "stand-alone" retiree plans because such plans have less than two participants who are "current" employees.. While all participants in retiree-only health plans have to be retirees, a retiree-only plan may cover non-retiree dependents of the retiree and still be considered a retiree-only plan even if the dependents are active employees of the employer in question. dependents are considered beneficiaries, not participants.. The exemption is also important because it allows stand-alone health reimbursement arrangements (hras) for retiree-only plans, which can be used to pay retiree premiums for group or individual.
4 under the aca, a �retiree-only plan� is a plan that does not cover any more than one current employee. page 3 of 10 . umc implications . employer payment plans (epps) and stand-alone hras have been common health plan arrangements in local churches in the united methodist church and other denominations, particularly for coverage of lay. For a true �retiree-only plan� under the tax code and erisa, employers can still sponsor an hra or pra and reimburse individual policy premiums on a pretax basis. a stand-alone hra that. Exempt from these fees are hras that are integrated with a self-insured plan or insured coverage that offers major medical coverage, stand-alone vision and/or dental hra plans*, retiree-only hras**, hras that cover only prescription drugs, health savings accounts and medical flexible spending accounts..
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