Call for HRAs for all small businesses: 5 key notes

IRS imposed a policy charging $100 each day per employee for small businesses that offer traditional Health Reimbursement Accounts, according to The Hill.

Here are five notes:

1. The Affordable Care Act outlawed HRAs for small businesses with 49 or less employees who did not fall under the employee mandate and did not meet the law's "Essential Health Benefit" requirements. Only businesses with 50 or more employees that meet ACA regulations could offer HRAs.

2. Small businesses around the country contested this policy as discriminatory.

3. If small employees do not offer a group plan, employers could pay some form of financial assistance to their employees for qualified healthcare expenses including co-pays, prescription drugs and deductibles.

4. The Treasury Department delayed the enforcement of this policy in February. The delay enabled legislative process to begin discussing the situation.

5. Legislators in the House and Senate are working on The Small Business Healthcare Relief Act, allowing small businesses to continue using HRAS without penalty or fine.

More on surgical centers:
SCA receives 'hold' rating, HCA stock down 0.44% & more — 5 key notes on ASC companies
BPC calls on Congress to accelerate medical product process: 5 things to know
Novartis Foundation names new board of trustees members: 5 things to know

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Webinars

Featured Whitepapers

Featured Podcast