careta

Thanks again for your helpful insight!

Brian, this is incredibly helpful, thank you. Other than a fully-insured stand alone retiree policy for this (which I believe is still exempt from 105(h), is there any way to offer pre-65 coverage to this selective class without the 105(h) issue? Would the ICHRA approach be acceptable (if it only reimburses premiums, per notice 2018-88)?

I am researching options to offer pre-65 retiree insurance to select early retirees who meet specific age, service and level requirements. Specifically, I am trying to determine whether it is permissible (in terms of ERISA, Section 105(h) etc.) to offer an HRA (retiree-only?) to these individuals to purchase exchange coverage on their own or perhaps via a private exchange (such as Mercer 365 marketplace). One of my concerns is whether this would pass 105(h) discrimination rules since it would only offered to select employees (who would be executives based on the proposed criteria). From what I have researched, I believe this type of arrangement would not be subject to discrimination testing under 105(h), if we only reimbursed premiums. In terms of ERISA, since this type of arrangement entails the retiree to select and pay their own premiums (albeit from the HRA), would this type of arrangement be exempt from the requirements of ERISA (i.e. recordkeeping, plan doc etc.)? I'm sure there are other considerations I may have overlooked. Appreciate any guidance on this or alternative suggestions on acceptable approaches.