NAHB, Business Groups Call for Change to Health Care Law

Filed in Advocacy, Labor, Legal by on December 4, 2015 0 Comments

moneyhealth squareNAHB and a coalition of more than two dozen business groups today sent a letter to House and Senate leaders urging them to pass pending legislation that would help small businesses provide health care for their employees and protect employers against outrageous fines.

The Small Business Healthcare Relief Act (H.R. 2911 in the House and S. 1697 in the Senate) would enable small businesses to provide Health Reimbursement Arrangements (HRAs) to employees with health insurance.

These HRAs allow businesses to offer pre-tax dollars to insured employees to help pay premiums and other out-of-pocket costs associated with medical care and services.

Under the Affordable Care Act, standalone HRAs are no longer allowed. Employers who are voluntarily providing financial assistance to help employees pay for health care through an HRA are subject to fines of $100 per day per employee. Over the course of a year, that fine would total $36,500 per employee and the law allows for fines up to $500,000 in total.

The letter to lawmakers referred to this as “perverse, because these small businesses are helping their workers. It seems irresponsible to us that the Internal Revenue Service would discourage those simply trying to offer assistance to their employees.”

NAHB has been deeply involved in this issue for months. Third Vice Chairman Randy Noel discussed the need for legislative action during an interview on the Fox Business Network this past summer.

NAHB and its coalition allies continue to urge House and Senate lawmakers to pass this vital legislation or include it in any other legislative packages to be considered by both chambers.

For more information, contact Suzanne Beall at 800-368-5242 x8407.

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