Text of IRS Notice 2018-88: Section 4980H -- Shared Responsibility for Employers Regarding Health Coverage, and Section 105 -- Amounts Received Under Accident and Health Plans (PDF)

31 pages. "[Recent] proposed regulations would expand the usability of HRAs by eliminating the current prohibition on integrating HRAs with individual health insurance coverage, thereby permitting employers to offer HRAs to employees enrolled in individual health insurance coverage.... The proposed integration regulations and the proposed [premium tax credit (PTC)] regulations raise issues under the Code, in particular concerning the application of section 4980H (the employer shared responsibility provisions) and section 105(h) (addressing discriminatory self-insured group health plans). This notice is intended to initiate and inform the process of developing guidance that addresses these issues, and requests comments on potential approaches developed by the Treasury Department and the IRS....

"In order to provide clarity to stakeholders, section III.A of this notice explains how section 4980H(a) would apply to an ALE that offers an individual coverage HRA. In addition, section III.B of this notice explains how section 4980H(b) (including the current affordability safe harbors) would apply to an ALE that offers an individual coverage HRA, describes potential additional affordability safe harbors, requests comments, and provides examples."
Internal Revenue Service [IRS]