A health reimbursement arrangement, or HRA, is a benefit plan you can
offer to your employees to reimburse them for medical expenses that are
not covered by an insurance plan. HRAs offer tax benefits, including
the deductibility of contributions you make to your employees’ accounts.
Since the Affordable Care Act (ACA) took effect, if you
employed 50 or fewer workers, your ability to provide HRAs to your
employees may have been limited. However, a law passed in December 2016
created a new type of HRA that you can offer if you do not provide group
health insurance.
The 21st Century Cures Act allows “stand-alone” HRAs if the
accounts meet funding and other requirements. These new HRAs allow you
to help your employees pay for medical costs, such as the reimbursement
of premiums for policies purchased on the healthcare exchange. In
addition, the Act extends relief from the $100 per day penalty for prior arrangements that did not meet Affordable Care Act rules.
Please contact us for more information about this new employee
benefit option. This discussion could be crucial given the uncertainty
of future ACA rules.
More Info: http://www.bas-pc.com
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