Earlier this month, Congress passed the 21st Century Cures Act and last week it was signed by President Obama. The Cures Act tackles mainstream issues such as mental health, the opioid crisis, FDA bureaucracy, and cancer research acceleration. Most impactfully, however, Title XVIII of the Act creates a new opportunity for small business owners to finance health coverage for employees.
Starting in January 2017, The Cures Act will allow small business employers (with less than 50 full-time equivalent employees) to secure money in a Health Reimbursement Arrangement (HRA) – up to $4,950/individual and $10,000/family – to pay for healthcare premiums instead of directly offering their employees health insurance. This can help employers save significant amounts of money, especially if their employees are older and/or have serious medical conditions. Any money left unused in the HRA is given back to the employer.
For Third Party Administrators (TPAs), the benefit is clear — promote a new product and attract smaller businesses to buy more HRAs.
With the new provisions outlined in the 21st Century Cures Act, TPA Stream will be an essential part of this increase in business, by collecting employees’ premium bills and sending them to Administrators for efficient reimbursement. This process will streamline how employees are receiving reimbursements, if purchasing insurance from the marketplace, and create an easy path for Administrators receiving this information.
Are you interested in learning more about TPA Stream? Schedule a Demo to learn how your business can eliminate manual claims submission and reduce the time spent on managing claims for HRA, FSA, and HSA plans.