Employers Could Face Health Care Reimbursement Penalty

Filed in Codes and Standards, Labor by on June 19, 2015 0 Comments

stethescopeAll employers – regardless of size – could face fines of $100 per day per employee beginning July 1 if they try to make health insurance more affordable for their workers by reimbursing them for some or all of their premium expenses for an individual market health insurance policy.

At issue is the use of Health Reimbursement Arrangements (HRAs), which has been changed under the Affordable Care Act. IRS created HRAs in 2002 to permit employers to provide pre-tax dollars to employees to pay for medical care and services.

Under the health reform law, stand-alone HRAs, which are HRAs offered by employers who want to contribute something to their employees’ health care costs but do not want to administer or offer a health plan, are no longer allowed.

On July 1, the $100 penalty will go in effect for businesses that provide reimbursement for more than one employee.

NAHB opposes this rule because it makes it harder for employers to help their employees with their insurance costs. NAHB is working with lawmakers in both chambers of Congress on a bipartisan approach to address this issue.

NAHB members can get the tools they need to comply with the Affordable Care Act. For more information, contact Suzanne Beall at 800-368-5242 x8407.


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