Defined Contribution Is Finally Legal!
|Course Name:||Defined Contribution Is Finally Legal!|
|Provider Name:||ComedyCE.com LLC|
|CE Credits:||1 hour|
After years of debate and numerous pieces of guidance, defined contribution for individual health plans is finally legal. The 21st Century Cures Act, signed into law December 13, 2016 by President Obama, contains a provision allowing for “Qualified Small Employer Health Reimbursement Arrangements.” Basically, companies not subject to the employer mandate can now set up a stand-alone HRA to help employees pay for qualified expenses, INCLUDING individual health insurance premiums, without the threatened $100 per day per employee penalty from the IRS. There are rules, of course, but many brokers and employers feel this is a step in the right direction. Others, though, worry that this strategy could lead to adverse selection in the small group market. In this class, we’ll review the new defined contribution rules, discuss the pros and cons of this new strategy, and debate whether this is or will become a good solution for your small group clients.