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January 13, 2021

IRS finalizes regulations clarifying application of employer shared responsibility provisions

In final regulations (TD 9949), the IRS has clarified how the employer shared responsibility provisions and certain IRC nondiscrimination rules apply to health reimbursement arrangements (HRAs) and other account-based group health plans integrated with individual health insurance coverage or Medicare (individual coverage HRAs). The final regulations also provide safe harbors for applying those provisions to individual coverage HRAs. The final regulations adopt with some revisions the proposed regulations issued in September 2019 (REG-136401-18).