IRS Releases Notice 2018-88 on Shared Responsibility for Employers Regarding Health Coverage; Comments Due December 28

The Internal Revenue Service (IRS) released Notice 2018-88 intended to assist in developing guidance under sections 4980H and 105(h) so employers understand how to structure integrated HRAs to avoid assessable payments (section 4980H) and potential loss of the exclusion from income for employer-provided health benefits (section 105(h)).

Notice 2018-88 is related to a notice of proposed rulemaking issued on October 23, 2018 that would permit HRAs to reimburse employees for the cost of individual health insurance coverage, subject to certain conditions.  The proposed integration regulations and the proposed premium tax credit (PTC) regulations would raise issues concerning the application of section 4980H (the employer shared responsibility provisions) and section 105(h) (addressing discriminatory self-insured group health plans) to employers offering integrated HRAs and their employees.

Comments are due December 28, 2018.