Legislation Offers HRA Tax Parity, End to RHS Beneficiary Problem
Today's call-to-action asks that you urge your Representative and Senators to support a bill that would provide tax parity to non-spouse/non-dependent individuals who qualify for and receive employer-provided health plan benefits. The House bill, the Tax Equity for Health Plan Beneficiaries Act (HR 1820) and the companion bill in the Senate, Tax Equity for Domestic Partner and Health Plan Beneficiaries Act of 2007 (S. 1556) are identical. Both bills contain a provision that would reverse the Treasury's Revenue Ruling on Health Reimbursement Arrangements (HRA), which stated that whether taxable or not, reimbursements from HRAs may no longer be made to non-spouse or non-dependent beneficiaries.
For those who have chosen to establish a Retirement Health Savings (RHS) plan, which operates as an HRA for your employees, we need your help. Take action to help improve health savings plans for all Americans by contacting your Representatives and letting them know that you support these bills.
Below are two sample letters you can use to write your Representative. You may also want to encourage your employees to contact their representatives. To help you in your efforts we have created a sample page that you may use to inform your employees.
Tell Congress You Support Passage of This Important Legislation!
Please consider emailing your Representative and Senators to urge their support for this legislation.
- To find your Representative's or Senator's contact information, use the U.S. House directory or U.S. Senate contact page.
- Copy the text into your personal e-mail
- Insert the name of your Representative or Senator at the top and your name at the bottom and send.
Sample E-mail for Plan Sponsors to Send to Representatives
Dear Representative:
As a constituent and as a public sector employer who offers a Health Reimbursement Arrangement (HRA) to our employees, I am writing to urge you to cosponsor and support passage of the Tax Equity for Health Plan Beneficiaries Act of 2007 (H.R. 1820).
The overall thrust of the bill would provide tax parity to non-spouse/non-dependent individuals who qualify for and receive employer-provided health plan benefits.
In my view, the most important provision in the bill would override current Treasury rules concerning non-spouse, non-dependent beneficiaries and direct the Treasury to issue rules that allow an employee to elect to have his Health Reimbursement Arrangement reimburse the uninsured medical expenses of a non-spouse, non-dependent beneficiary. This provision would allow our participating employees to name a person other than a spouse or dependent as an eligible beneficiary for their HRA and is an important fairness issue. As it stands now, they are not allowed to do that.
I urge you to cosponsor the bill and thank you in advance for your support for this important legislation.
Respectfully yours,
Jane Doe
Town of Vantagepoint
Sample E-mail For Plan Sponsors to Send to Senators
Dear Senator:
As a constituent and as a public sector employer who offers a Health Reimbursement Arrangement (HRA) to our employees, I am writing to urge you to cosponsor and support passage of the Tax Equity for Domestic Partner and Health Plan Beneficiaries Act of 2007 (S. 1556).
The overall thrust of the bill would provide tax parity to non-spouse/non-dependent individuals who qualify for and receive employer-provided health plan benefits.
In my view, the most important provision in the bill would override current Treasury rules concerning non-spouse, non-dependent beneficiaries and direct the Treasury to issue rules that allow an employee to elect to have his Health Reimbursement Arrangement reimburse the uninsured medical expenses of a non-spouse, non-dependent beneficiary. This provision would allow our participating employees to name a person other than a spouse or dependent as an eligible beneficiary for their HRA and is an important fairness issue. As it stands now, they are not allowed to do that.
I urge you to co-sponsor the bill and thank you in advance for your support for this important legislation.
Respectfully yours,
Jane Doe
Town of Vantagepoint