How is our company's Health Reimbursement Arrangement (HRA) affected by the age-26 coverage mandate?

Under PPACA, group health plans that cover dependents must extend that coverage to "adult children" until age 26. Since an HRA is considered a group health plan in this context, this coverage mandate will apply as of the first plan year beginning on or after September 23, 2010. Each employer sponsoring an HRA should determine whether this coverage mandate applies to its HRA plan, since there are exceptions for stand-alone vision or dental and retiree-only plans and others.

Employers may decide to increase their contribution amounts to correspond to the additional individuals to be covered by the HRA. Also, plan documents and communications should be updated prior to the applicable effective date. If you use Ceridian's HRA services, these materials will be provided in coordination with your renewal.

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