IRS Delays Enforcement Of Small Business Health Reimbursement Arrangements

On February 18, 2015, the federal Internal Revenue Service (IRS) issued guidance to small employers that it would delay enforcement of health reimbursement arrangements (HRA) in which the employer provides tax-free premium assistance to their workers to purchase insurance through the individual market. Until June 30, 2015, employers with fewer than 50 full-time employees will not be assessed an excise tax penalty for offering such an HRA arrangement during calendar year 2014 and the first half of 2015 to pay or reimburse employees for individual health policy premiums or Medicare Part B (outpatient services) or Part D (pharmacy . . .