WEX Health spearheaded the Small Business Healthcare Relief Act that enables businesses to help employees purchase health insurance
Bill Enables Small Employers to Help Employees Pay for Healthcare
December 7th, 2016
Today the Senate passed the 21st Century Cures Act. The Act contains the provisions of the Small Business Healthcare Relief Act, which enables small employers with less than 50 full time employees to provide standalone health reimbursement arrangements that can be used to reimburse eligible healthcare expenses including health insurance premiums. The law is effective for plan years beginning after December 31, 2016, but importantly, it provides transition relief through that date so that any small employers with non-compliant plans will not be penalized.
WEX Health was first to bring this issue to the attention of lawmakers and staff on Capitol Hill three years ago in response to multiple rulings from IRS, HHS, and DOL that effectively outlawed these arrangements. The Cures Act overturns that guidance and enables small businesses for whom offering a group health plan is not practical to provide assistance to their employees to cover health insurance premiums and out of pocket expenses. We maintained the leadership position in advocating for this important change, along the way building an important coalition of business and industry groups and generating true bipartisan support. We appreciate the hard work of many committed and passionate lawmakers and their staffs that made this outcome possible, as well as the support of many WEX Health partners who participated in advocacy efforts on behalf of this important reform.
This legislation creates a market opportunity for partners. A large percentage of small employers do not offer group health but want to find a way to help their employees with health care costs. The HRAs allowed by the Cures Act are just the vehicle to enable them to provide that support. If you have questions, please contact your Partner Account Executive.
