Consumer-Directed Health Care
Consumer-directed health care is becoming more prevalent as traditional health plan models evolve in response to an increased demand for portability, a desire to control costs, and a need to provide wider access to coverage. Groom was on the forefront of the consumer-directed healthcare movement at its inception, working closely with Congress and the Department of the Treasury to develop rules relating to Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and Health Flexible Spending Arrangements. Examples of our experience include:
- Assisting insurance companies design high deductible health plans to comply with Internal Revenue Service (IRS) Code section 223 and IRS guidance.
- Advising insurers and employer plan sponsors regarding impact of coverage under critical illness, hospital indemnity and medical clinics upon HSA-eligibility.
- Advocating for legislation and IRS guidance concerning the application of the Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation of coverage rules to HRAs.