Last week, the IRS delayed penalties for non compliance health reimbursement arrangements (HRA) and the payment of employer plan until July 1st 2015. However, according to Rep. Charles Boustany (R-AL), this is not enough help for small businesses. What would really help small businesses, said Boustany, is to revive self HRAs. As such, Boustany said he plans on legislation to reintroduce do just that. Here's what you need to know about the current state of the HRA legislation. 
Background
Historically, CRH were affordable tool used by the small business community to help recruit and retain quality employees while remaining competitive with larger companies. Stand-alone CRH allowed employers to reimburse employees tax-free for medical expenses, including individual health insurance premiums.
However, with the health reform are changes to how employers can use HRAs autonomous. Long story short, new restrictions on annual limits caused most self HRAs to be non-compliant. Under the new "market reforms," employers with a non-compliant HRA or employer map improper payment are now subject to high costs.
So when the IRS announced last week they would late penalties , many in the small business community felt a sense of relief. they had more time to switch to a repayment plan compliant before fresh face.
However, like Boustany noted in press release , the delay on fees is only one solution short-term when the new problem from the root HRA administration policy. According Boustany, delay "shows the administration recognizes that place limits on HRA is bad policy, but a short time term is simply not good enough for small businesses and their employees. "
Congress should help small businesses by Reviving CRH
The solution? Revive the HRA by autonomous HRAs exempt group health plan rules.
In December 2014, Boustany and Mike Thompson (D-CA) has introduced legislation to do just that. As we have written about previously Boustany and Thompson introduced the bipartisan Small Business Act Healthcare Relief , legislation that would permanently reverse current restrictions on CRH, and give more flexibility for companies and their employees when working with Medicare coverage options.
According to the website of Boustany, he plans to reintroduce the bill for the 114th Congress in the coming weeks.
According Boustany, "Moving forward, I will reintroduce my Relief Act Healthcare small businesses and aggressively pursue his signature into law. The American people have promised and choice flexibility to make health care decisions - relief Act Small Business health care will deliver on this promise administration, Republicans and Democrats should all support this common sense and bipartisan bill. "[
Conclusion
as the bill is reintroduced in Congress in the coming weeks, Congress should support small businesses by removing restrictions on independent HRAs. CRH give small businesses and their employees access to more affordable health care while offering the same tax benefits larger companies to receive health care provided by the employer.
Update
Congress introduced the revised language for the Small Business Act Healthcare Relief June 25, 2015. This law is vital to the small business community! Visit our legislative resource page for detailed information, including how you can help this bill becomes law.
What do you think? Do you think that HRAs should be reinvigorated? If introduced, do you think that Congress will support small businesses by reviving HRAs? Leave a comment. We would like to know your opinion.
0 Komentar