ATR Supports Rep. Bishop’s Bill to Codify Health Reimbursement Arrangements Rule

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Posted by Isabelle Morales on Friday, June 25th, 2021, 3:30 PM PERMALINK

ATR President Grover Norquist released a letter in support of Congressman Dan Bishop’s (R-N.C.) new bill to codify the Trump administration’s Health Reimbursement Arrangements (HRA) rule. This will preserve healthcare freedom and choice by making sure that workers continue to have the option to purchase healthcare through an HRA as an alternative to relying on employer provided insurance.

This rule ensures that hundreds of thousands of Americans continue to receive health insurance coverage that they wouldn’t enjoy without HRAs. With more healthcare insurance choices also comes more competition, ultimately leading to better, more affordable healthcare in the United States. 

If they are serious about promoting innovation, driving down healthcare costs, and protecting consumer choice, lawmakers should co-sponsor and support this legislation.  

Read the full letter here or below:  

Dear Members of Congress:  

I write in support of Congressman Dan Bishop’s (R-N.C.) legislation to codify the Trump administration’s rule to expand the use of Health Reimbursement Arrangements (HRAs). Codifying this rule will promote employer flexibility and choice in the healthcare system. All members of Congress should support and co-sponsor this important piece of legislation.  

The HRA rule was finalized in 2019 and allows employers to offer HRAs to their employers to purchase insurance as an alternative to employer provided care. HRA funds are tax free to both the employer and employee and funds roll over year to year.  

This is especially valuable to small businesses and their employees, as, without, the ability to offer HRAs, they could be prevented or limited in their ability to offer high quality coverage to their employees. Not only does this leave employees without high quality coverage, but it also hurts employers’ ability to attract high quality applicants.  

Before the rule, more than 80 percent of employers offered their workers just one choice, so this rule allowed businesses more flexibility to offer their workers’ health insurance coverage. In fact, it is estimated that codifying this rule has and will help 11 million workers get this kind of coverage and 800,000 businesses offer this kind of coverage. This influx of covered Americans in the individual market will lead to more choice, lower premiums, stability, and innovation. Giving workers increased healthcare options also encourages competition which in turn can lower costs and encourage more quality care.

In addition, by giving employees more control over their healthcare dollars, the HRA proposal will increase healthcare transparency and put downward pressure on wasteful healthcare spending.  

HRAs will also complement existing tools to expand healthcare choice as they can be used in conjunction with a Health Savings Account-qualified plan to pay for premiums, dental care, and other expenses. 

Congressman Dan Bishop’s legislation to codify Health Reimbursement Arrangements (HRAs) will ensure millions of working families continue to have access to these accounts. This will preserve healthcare freedom and choice by making sure that workers continue to have the option to purchase healthcare through an HRA as an alternative to relying on employer provided insurance. 

 

Onward,  

Grover G. Norquist  

President, Americans for Tax Reform 

 

Photo Credit: Congressman Dan Bishop

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