Bill > S3060

This bill, the Small Business Health Care Relief Act of 2016, creates an exception for "qualified small employer health reimbursement arrangements" (QSEHRAs) from certain group health plan requirements. A QSEHRA is an arrangement funded solely by an employer, without employee salary reductions, that reimburses employees for medical care expenses up to a certain annual limit ($5,130 for individuals, $10,260 for families, with adjustments for inflation and prorated coverage). These arrangements must be offered on the same terms to all eligible employees, though benefits can vary based on age and family size. Eligible employers are those not considered "applicable large employers" (generally those with fewer than 50 full-time employees) and who do not offer a group health plan. The bill also outlines notice requirements for employers offering QSEHRAs, reporting requirements for W-2 forms, and how QSEHRAs interact with premium tax credits for health insurance purchased through exchanges, ensuring that employees receiving QSEHRAs may not be eligible for certain subsidies if the QSEHRA is considered "affordable" coverage. Amendments are also made to the Employee Retirement Income Security Act of 1974 (ERISA) and the Public Health Service Act to reflect these changes.