On Tuesday, December 13, President Obama signed into law H.R. 34, a new bill that includes the 21st Century Cures Act. This Act allows for eligible small employers to offer Health Reimbursement Arrangements (HRAs) to employees if no other group health plan is provided. Under this Act, in order to qualify for this HRA, employers must meet the following requirements:
- Have less than 50 full-time employees
- Provide the HRA on the same terms to all “eligible employees
- Reimburse only medical care, including health insurance premiums
Additionally, the HRA cannot exceed an indexed maximum of $4,950 per year ($10,000 if family members are covered). This act is effective for plan years beginning after December 31, 2016.