Small Business HRAs: An Employee Health Care Solution

In December 2016,  President Obama signed the “Cures Act” to give small businesses and nonprofits a “new” option for providing health care to employees. The Cures Act restored some of the utility of stand-alone HRAs by exempting small employers from some requirements of the ACA. The new “Small Business HRA” allows employers with less than 50 full-time equivalent employees to provide tax-free contributions to employees to reimburse them for qualified health care expenses.