WASHINGTON, Dec. 4, 2015 /PRNewswire-USNewswire/ -- Today, the Council for Affordable Health Coverage and 25 allied organizations, urged House and Senate leadership to take up the Small Business Healthcare Relief Act (H.R. 2911/S. 1697) in the remaining days of the current congressional session.
"We are in a race to the finish to save Americans' health benefits," said Joel White, president of the Council for Affordable Health Coverage. "If Congress fails to act soon, employees across the country could ring in the new year without financial healthcare assistance from their employers."
Historically, many small business employers have reimbursed employees for individually purchased health coverage and related medical expenses through Health Reimbursement Arrangements. But since July 1, the IRS has deemed these arrangements impermissible, fining HRA-providing employers $100 per day, per employee. That's especially striking considering that the ACA fine for larger businesses that provide no coverage at all, is one-eighteenth that sum.
"If the IRS is hoping to deter employers from helping their workers with health costs, it's right on the money," White said. "With penalties that could amount to $36,500 per employee, or $500,000 total, employers will be forced to draw back their helping hands."
The Small Business Healthcare Relief Act (H.R. 2911/S. 1697) would allow employers to offer HRAs without being subject to outrageous IRS fines. We encourage Leadership to bring the bipartisan bill to the Floor, or include the measure in any moving legislative vehicle, before adjourning for the year.
Our whiteboard animation provides a clear visual of exactly how the IRS fine affects employees and businesses.
The complete list of the 26 organizations who signed the letter can be found here.
For more information or to set up an interview with CAHC President Joel White, please contact Sandra Ramos at (202) 471-4228 ext. 115 or email.
About the Council for Affordable Health Coverage
The Council for Affordable Health Coverage members believe that the cost of health coverage is too high and growing unsustainably; and that informed consumers, robust choices and competitive markets are the keys to building a more affordable, customer-friendly health system. CAHC's mission is to promote policies that lower health costs for all Americans. Read more at (www.cahc.net).
SOURCE Council for Affordable Health Coverage