Employee retention may -being one of the biggest challenges many businesses face 
today, and often keeping your best employees is more than just pay them well. Many people are also looking to their employers for coverage of affordable health care, but for small business owners the cost to offer group health insurance can be crippling. Rather than risk losing employees to competitors that offer benefits, many companies allow employees to go out and shop for individual insurance plans and provide reimbursement to help cover monthly premiums and other costs related to health care.
DOL Restructures Health Benefit Landscape
In September 2013, the Ministries of Labor, Treasury, and health rights and services issued guidelines to annual limits existing requirements relating to stand-alone health reimbursement arrangements (HRA).
The rule, as many interpreted, said that if you were a small company that does not offer a group health insurance plan (which are not required under Obamacare for businesses with less 50 employees), but attempted to reimburse employees for their individual plans without satisfying market reforms, you could be fined up to $ 100 per day per employee to $ 36,500 per year.
Small Business Act Healthcare Relief
groups like the National Federation of Independent Business, the National Association for the Self-Employed, and Zane Benefits worked with Congress to pass a bipartisan solution to remove excessive penalties. Current legislation, entitled Small Business Act Healthcare Relief (SBHRA), was introduced in the House of Charles Boustany Representatives (R-LA) and Mike Thompson (D-CA) and Senate by Senator Charles Grassley (R-IA) and Heidi Heitkamp (D-ND). It has 10 additional co-sponsors in the Senate and 67 in the House, and the two legislative branches of the bill is currently in committee pending review.
The Fix
While small businesses are waiting for Congress to restore the HRA, there are additional options to help employers continue to provide benefits the most cost effective manner without incurring penalties. A repayment plan for health care (HRP) is specifically designed to pay health insurance premiums and basic prevention services, while meeting market reforms. He notes Internal Revenue Code §105, and provides tax benefits to help mitigate some of the costs of individual health plans. There is no traditional health insurance, but rather a means for employers to make an allowance available to employees, and reimburse employees for their eligible expenses related to health care. The employer does not disburse funds until employees incur approved expenditures.
Using this plan Section 105 also ensures your company is in compliance with the IRS, ERISA and requirements of the Affordable Care Act.
Conclusion
small businesses know that health insurance offers is a way to attract and retain top talent, but companies must establish repayment plans on track. While we await the passage of SBHRA, a section 105 scheme of reimbursement of health care, it is possible to provide reimbursement for individual health insurance premiums and basic prevention services while enabling employees to keep their coverage customizable laptop.
How the new law would change the way you offer a refund to your employees for the individual plans? Leave a comment below.
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