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Before leaving office, President Obama signed the 21st Century Cures Act into law. The legislation allows qualified small employers to offer a new type of health reimbursement arrangement (HRA) to help employees pay for medical expenses, effective January 1, 2017.

Known as a “qualified small employer health reimbursement arrangement” (QSEHRA), these are not considered “group health plans” under the Affordable Care Act. This means that eligible qualified small employers will be allowed to pay or reimburse employees’ eligible medical care expenses through a QSEHRA on a pre-tax basis.

To qualify for this stand-alone HRA, the church cannot offer a group health plan to any employees. Also, the amount of payments and reimbursements cannot exceed $4,950 (or $10,000 in the case of an arrangement that also provides for payments or reimbursements for family members of the employee).

Due to the complexity of these rules, they should be addressed with professional assistance. You can learn more by visiting this link.

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