Good news for small businesses and employers who prefer alternative healthcare plans.
“Late last year, Congress re-authorized Health Reimbursement Arrangements for business with fewer than 50 employees. As a result, these firms won’t risk large penalties on payments they provide to workers who purchase their own health insurance. “
Despite news circling the repeal of the ACA, the reinstatement of HRA’s are considered a good option for small firms according to experts because of the ease with which they can be and lax commitment.
Here are some of the key requirements:
- 1.) If adopted, HRA’s must be offered to all eligible workers some exclusions apply. You may NOT offer a group health plan and HRA.
- 2.) HRA paybacks will be funded only by employer contributions and all benefits will remain equal with exceptions to those who are older or have spouses and families.
- 3.) HRA limit for single workers: $4,950 w/families: $10,000 (will be adjusted for inflation)
- 4.) HRA amounts are deductible by employer and not taxable to employee (if employee possesses health insurance). If worker does not have insurance, HRA payments for health expenses are taxable to the worker.
For more requirements & benefit descriptions visit the HealthCare.gov website. http://bit.ly/1NKkAtP
This article was inspired by an article featured in the Weekend Investor section of the Wall Street Journal (Jan. 28th, 29th) by Laura Saunders.
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