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Using HRAs to Pay Insurance Premiums: Proposed Legislation Aims to Bring Back Popular Obamacare Workaround
HR Benefits Alert
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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