A proposed rule has been released that would exempt account-based plans such as health reimbursement arrangements (HRAs), health flexible spending accounts (FSAs), and health savings accounts (HSAs), from creditable coverage disclosure requirements. Public comments on the proposal are due by January 26, 2026.

HHS recognizes that while account-based plans are expressly listed in the law as plans generally within scope, these types of plans do not actually offer prescription drug coverage, making the creditable coverage notice inapplicable.

In the proposed rule, ICHRAs are used to demonstrate this inapplicability of the notice and suggests that ICHRA creditable coverage notices are confusing to individuals, consistent with feedback from the ICHRA industry. ICHRAs will generally indicate that they do not offer creditable coverage (because they do not directly offer prescription drug coverage), while a notice from the ICHRA member’s underlying health insurance plan may indicate that it offers creditable coverage, leading to potentially contradictory information. Similar issues can arise with other types of account-based plans.

Until the rule is finalized, employers should continue to comply with existing creditable coverage disclosure requirements and monitor developments closely. Even if the proposed exemption is finalized, it will only apply to account-based plans such as HRAs, health FSAs, and HSAs. Group health plans that offer prescription drug coverage remain subject to the disclosure requirements, so employers should ensure those notices continue to be provided.

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