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Using HRAs to Pay Insurance Premiums: Proposed Legislation Aims to Bring Back Popular Obamacare Workaround
HR Benefits Alert Link to more items from this source
July 22, 2015
"The Small Business Health Relief Act would allow some firms to use stand-alone HRAs, plans that contributes un-taxed money an employee can use to pay for insurance premiums.... Specifically, the bill would: [1] Ensure small businesses and local municipalities with fewer than 50 employees are allowed to continue using pre-tax dollars to give employees a defined contribution for healthcare expenses; [2] Allow workers to use HRA funds to purchase health coverage on the individual market and for qualified out-of-pocket medical expenses if the employee has qualified health coverage; and [3] protect employers from being financially penalized for providing this cost-sharing option to employees."

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