The following infographic highlights the important points regarding the 21st Century Cures Act and standalone HRAs for insurance premium reimbursements. The Cures Act affects millions of small businesses and their employees.
The 21st Century Cures Act
- On December 13, 2016, President Obama approved the 21st Century Cures Act.
- The law overturns ACA regulations (IRS Notice 2013-54) governing small business Health Reimbursement Arrangements (HRAs).
- Now small employers with fewer than 50 full-time employees, and who do not offer a group health plan, can provide standalone HRAs in order to cover eligible healthcare expenses and health insurance premiums for their workforce.
Covers plans beginning on or after January 1, 2017
Maximum premium reimbursement under the Cures Act:
- $4,950 for individuals
- $10,000 for families
Eligible employees include ALL employees of the employer except:
- Those who have not completed 90 days of service
- Those under age 25
- Part-time and seasonal employees
- Those covered by a collective bargaining agreement, if accident and health benefits were the subject of good faith negotiations
- Non-resident aliens with no US-source income from the employer
Need to Know!
- Employees (and participating family members) MUST be enrolled in a plan with minimum essential coverage
- Employees receiving a subsidy for coverage purchased through government-sponsored health insurance exchanges will have their subsidy reduced by the amount in the HRA
- The 21st Century Cures Act does not apply to small employers that already offer group health insurance plans, or employers with 50 or more full-time employees
Did You Know?
71% of small employers do not offer health insurance and had no other option to help their employees. The Cures Act opens the door for more affordable healthcare for millions of Americans.
Want to learn more about QSEHRAs? Visit our FAQ and answer page.