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.
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.
Since the ACA was signed into law, a number of changes have been made to all types of tax-advantaged accounts, including FSAs, HRAs, and HSAs. In this course, we examine those changes and take a look at some of the others that may be on the horizon.
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.
Josh Collins talks about the lofty goals of consumer directed health care and the undeniable reality that cost is still the number one concern for most employees. Without abandoning our goals of creating better health care consumers, brokers and employers need to listen to workers and address their concerns if they truly want the benefits package to serve as a recruitment and retention tool. He finishes by offering a strategy that will help keep employer and employee costs under control while delivering a plan that employees will appreciate.
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.
This set of FAQs addresses the employer notice of coverage options, health reimbursement arrangements, disclosure of information related to firearms, employer group waiver plans supplementing Medicare Part D, fixed indemnity insurance and payment of PCORI fees.
As of January 1, 2011, over-the-counter drugs purchased without a prescription are no longer an eligible expense under an FSA, HRA, or HSA.