At Zane Benefits, we receive numerous emails and phone calls regarding the legality of HRAs. HRAs are absolutely legal in all 50 states, including Colorado.
If you call the Colorado DOI, they too will tell you that HRAs are legal in Colorado for employers of all sizes.
Specifically, the Colorado DOI's stance appears to be:
- HRAs are legal for employers of all sizes.
- The DOI does not regulate employers (or HRAs). Rather, they regulate carriers and producers (i.e. agents).
- An individual employee who has an HRA can buy individual health insurance and receive reimbursement from an HRA for the premium. If the employee works for a company with less than 50 employees, the carrier may be required to offer that same policy to all employees of the company subject to Colorado small group regulations.
According to meetings with the DOI: As long as insurance agents explain items 1-3 (above) to their clients, they will comply with Colorado insurance regulations with respect to HRAs and individual health policy reimbursement.
This is great news for all Colorado citizens.