NFIB: Delaying Obamacare HRA Penalty Not a Solution

Date: February 18, 2015

www.NFIB.com
For Immediate Release
Contact:  Eric Reller
202-314-2073 or [email protected]

 

NFIB: Delaying
Obamacare HRA Penalty Not a Solution

Small
Businesses Need Permanent Protection from Catastrophic Penalties

 

WASHINGTON, D.C., February
18, 2015
— The National Federation of Independent
Business (NFIB) today is reacting to the sudden announcement by the IRS that it
will delay penalties for businesses using
Health Reimbursement Arrangements (HRA’s) as a tax-free means to reimburse employees’
healthcare costs and health insurance premiums until July 1, 2015.

“This
temporary delay serves as an important immediate step to protect small
businesses from costly penalties when trying to assist employees with the
purchase of health insurance,” said NFIB
Vice President of Public Policy Amanda Austin
. “However, another delay to
Obamacare does not fix the underlying problems – which the Administration is
conceding with these actions. We urge Congress to provide permanent relief from
catastrophic penalties associated with Health
Reimbursement Arrangements and to find a solution to rising health insurance
costs for small businesses.”

According
the NFIB Research Foundation, 14 percent of non-offering small employers utilize
reimbursement arrangements for employee healthcare – which would see significant
costs when the HRA delay ends July 1, 2015. NFIB supports choice and
flexibility when making healthcare decisions, which is severely limited by
penalizing HRA’s.

 

###

NFIB
is the nation’s leading small business advocacy association, with offices in
Washington, D.C. and all 50 state capitals. Founded in 1943 to give
small-business owners a voice in public policy-making, NFIB’s policy positions
are set by its 350,000 business-owner members, who send their views directly to
state and federal lawmakers through NFIB’s unique member-only ballot. NFIB’s
mission is to promote and protect the right of our members to own, operate and
grow their businesses. More information is available online at www.NFIB.com/news

Related Content: Press Release | Healthcare | National

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