Small Business Health Care Relief Act

A bill (H.R. 5447) passed by the House would exclude from the definition of a group health plan under ACA (that is required to offer minimum essential health coverage or pay a penalty) a qualified small employer health reimbursement arrangements (QSEHRA). Such a plan would be funded entirely with employer contributions, the amount of which would be capped. This proposed legislation has been long awaited by small business groups after the IRS said it would impose a $100 per day per employee penalty for health reimbursement arrangements used to pay health coverage for employees.