A new law passed in December 2016 called the 21st Century Cures Act created a new kind of Health Reimbursement Arrangement (HRA) that can be used by companies with 50 or fewer workers that don’t offer group health insurance.
Prior to this law under the ACA, HRAs were often limited, but they provide a good way for your company to reimburse employees for uncovered medical expenses. They offer tax benefits, such as the ability to deduct contributions you make to employees’ accounts.
Creating one of these new HRAs requires that you meet certain requirements in funding and other areas, but your employees can use it to get reimbursements of premiums that they buy on the exchanges. This might be important, especially given the uncertain future of the ACA.
If you want more information about these new HRAs, or if you’re looking for advice on finding something that fits your business, please contact us.