Breaking News: 21st Century Cures Act Ushers in New Era for Employer-Provided Health Insurance
Starting January 1 2017, employers will be able to reimburse employees on a pre-tax basis for individual health policy costs
(MINNEAPOLIS, December 13, 2016) The 21st Century Cures Act, signed into law by President Barack Obama today, includes an important provision that allows employers to give money on a pre-tax basis to their employees to purchase individual health insurance.
The legislation received overwhelming bipartisan support, passing by 94-5 in the Senate and 392-26 in the House.
The bill enables eligible employers to set up and fund health benefits for eligible employees on a pre-tax basis, allowing employees to be reimbursed for what they spend on health care, including individual health insurance premiums.
“Employers across the country are embracing the defined contribution model of health benefits,” said Abir Sen, CEO of Gravie. “They will now be able to give money to their employees without having to worry about tax consequences, putting the defined contribution model on more of an equal footing with traditional group insurance. For small businesses struggling to manage their healthcare costs, this law will be a huge boon.”
With smart technology and a human touch, Gravie is pioneering the defined contribution model of health benefits. Employers choose how much money they want to spend, and give employees the freedom to choose the coverage that fits them the best. Gravie is there every step of the way to help both employers and their employees.
Since its founding three years ago, Gravie has grown rapidly. More than 900 employers representing approximately 35,000 lives across 34 states use Gravie as their health benefit. For more information visit www.gravie.com.