Health care reform initiatives that have been passed recently, including the passing of the 21st Century Cures Act in the year 2016, have brought major changes that affect health insurance. Some of the changes include updates to the health reimbursement arrangements. This is one of the best ways for small businesses to give health benefits to its employees. Here are some things you should know about HRAs and the changes in the health law.
This is an HRA that is linked to a high deductible group health insurance policy. This HRA is also known as linked, group or deductible-only. The type of HRA is accessible to employees that use group health insurance policy of the company as a complement to aid with deductible costs. In line with the recent health reforms, every business should work hand in hand with their brokers to make sure that the group health insurance policies, together with the integrated HRA, meet all health reform necessities.
Retiree HRAs are made to reimburse employees only after retirement. IRS rules stipulate that businesses can go on to give a tax-advantaged HRA to employees that are retired so long as it is selected as a retiree-only type. Businesses should, therefore, make sure that retiree-only HRA is administered differently from HRA for current employees.
Small Business HRA
The Small Business Health Care Relief Act created the small business HRA. It is available for businesses that have 50 employees or less. Small business HRA permits enterprises to compensate employees who have bought individual health insurance plans. Yearly company payment amounts are restricted to $4,950 for individual coverage and $10,000 for family cover. Employees that take part in a diminutive business HRA can claim tax credits under Affordable Care Act. However, tax credits are regulated by the value of the company’s contribution.
Let Us Help
You need to stay informed to provide quality services to your employees and ultimately increase your company’s productivity. Allow our experts at Advanced Reimbursement Solutions to help. We can give you more helpful information about HRAs and handle all of your medical claims management needs. Contact us today to get in touch with one of our team members in Wilmington or Phoenix.