Much of the news surrounding healthcare as of late had included strengthening relationships with Applicable Large Employers and their sponsored healthcare. However, on December 13, the 21st Century Cures Act was signed off by President Obama to allow smaller employers to take part in a major move in healthcare reform.
The 21st Century Cures Act is a bipartisan celebration, as smaller employers —those with less than 50 full-time employees or full-time equivalents—are now able to utilize stand-alone HRAs or Health Reimbursement Accounts which had previously been prohibited under the ACA. The 21st Century Cures Act arrives on the heels of the IRS’s Notice 2013-54, which will regard these as payment plans on behalf of the employers.
Further, the Act is an extension of the transition relief set forth in the IRS’s Notice 2015-17. There are some restrictions, including a $4,950 cap per year for individuals; $10,000 per year for families.
If eligible, small businesses can take part in the newly minted HRAs following December 31, 2016.