Today, President Obama signs the 21st Century Cures Act into law and in doing so legalizes “qualified small employer HRAs.” This is a battle we’ve been fighting in the insurance industry for at least the last decade, and as of today, Dec. 13, 2016, defined contribution for individual plans is finally legal.
Tagged: Defined Contribution
With the passage of the 21st Century Cures Act small employers will be able to establish Health Reimbursement Accounts (HRA) to provide Premium Reimbursements for their employees’ Individual Health Insurance Plans beginning January 1, 2017. President Obama is ending his service with a grand finale.
Among other things, the 21st Century Cures Act legalizes “defined contribution” for individual plans through a qualified small employer health reimbursement arrangement for non-applicable large employers. Below is the language from that part of the legislation.
This is part two of a two-part “After ACA” webinar series. In this session, nicknamed “OPPORTUNITY,” we focus on the detailed effects by market segment, what the carriers are talking about behind the scenes, the “wish list” of agent organizations and industry insiders, and, most importantly, the opportunities that will emerge as the major provisions of the ACA are rolled back.
If you thought the final nail had been driven into the defined contribution coffin, think again. A bill recently passed the House that could legalize defined contribution, and if it does it will have a huge impact on the small group market. In this session, Josh Hilgers discusses the bill and how your job will change if it does become law.
For years, insurance agents have debated whether employers could legally reimburse employees on a pre-tax basis for health insurance purchased in the individual market. A new bill would give this strategy the green light.
This set of FAQs addresses compliance of premium reimbursement arrangements.
This FAQ explains the potential penalty an employer that pays for or reimburses employees for individual health insurance premiums could face.