COLDWATER, Mich., Dec. 20, 2016 /PRNewswire/ -- On December 14, 2016, President Obama signed H.R. 34, modifying or adding provisions for health care and spending plans. These include the 21st Century Cures Act and the Health Reimbursement Arrangement (HRA) provision for eligible small employers. The new HRA provision allows eligible small employers to offer HRAs to their employees that are solely funded by the employer and can be used to pay for health insurance premiums.
This new law will now include millions of small employers that weren't previously able to use an HRA to reimburse employees for health insurance premiums, due to restrictions under the Affordable Care Act. Infinisource Benefit Services offers HRA administration for employers of all sizes and is equipped to handle requests from these companies that are now able to offer this option.
The HRA provision allows employers who meet certain criteria to offer an HRA to their employees in lieu of offering their own health plan. The company must:
- Have fewer than 50 full-time employees
- Not offer a group health plan
- Provide the HRA on the same terms to all eligible employees
Maximum reimbursement allowed under the plan for eligible small employers is $4,950 for individuals and $10,000 for families. The provision will go into effect for plans beginning after December 31, 2016.
"This new provision will be a significant new option for small employers who previously had more restrictions around offering HRAs to their employees," said Jody Oliver, president and CEO of Infinisource Benefit Services. "An HRA can reduce some of the burden on small employers while covering insurance premiums and out-of-pocket medical expenses for employees."
An HRA benefits employers and employees because qualified coverage and payments are excluded from gross income, leading to significant tax savings. HRA administration is just one of the offerings from Infinisource Benefit Services, and this exciting benefit option is helpful for small employers.
About Infinisource Benefit Services
Infinisource Benefit Services has been a leader in the COBRA and benefits administration industry since it started in 1986. Over the past 30 years, Infinisource Benefit Services has grown and expanded to include administration for COBRA, Flexible Spending Accounts, Health Savings Accounts and Health Reimbursement Arrangements. Over 8,000,000 COBRA notices have been generated without a single adverse judgment or penalty. Infinisource Benefit Services has also processed more than 5,000,000 FSA/HRA claims and that number continues to grow. With 30 years of experience comes a unique understanding of employers' needs and how to best provide for those needs. For more information, visit www.infinisource.com.
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SOURCE Infinisource Benefit Services