Health Care Reimbursement Option Now Available
February 22, 2017
Small businesses—including churches and related ministries—can once again pay premiums for their employees’ health insurance. Previously known as an Employer Payment Plan (EPP) or Health Reimbursement Account (HRA), these arrangements violated the Affordable Care Act (ACA). However, due to a recently passed law, ministries that are not part of a group health plan now have another option to help employees with health care costs.
21st Century Cures Act
The 21st Century Cures Act went into effect at the end of 2016. It includes a provision known as the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). QSEHRA allows eligible employers to pay or reimburse eligible employees for medical care expenses (see who qualifies, below). The tax-free benefit includes insurance premiums and eligible out-of-pocket medical expenses.
Evaluate your ministry’s health insurance—deadline to act is March 13, 2017.
Which ministries are eligible?
With the passage of QSEHRA, ministries may once again find reimbursement plans preferable to offering a group insurance plan. However, the new law does have a few new restrictions. To be eligible to offer a QSEHRA plan to employees, your ministry:
- Must have less than 50 employees. Any ministry that does not meet the definition of an Applicable Large Employer (ALE) as defined in the Affordable Care Act is eligible to participate. ALEs are employers that have 50 or more full-time and full-time equivalent employees.
- Cannot offer both a QSEHRA plan and a group health insurance plan. If your ministry currently offers a health insurance plan to employees, then you will need to drop your current plan to be eligible to offer a QSEHRA plan.
Learn more
Visit the MinistryWorks® by Brotherhood Mutual website to learn more about the Qualified Small Employer Health Reimbursement Arrangement. The website article provides information concerning:
- Employee eligibility
- How QSEHRA works
- Employee responsibilities
- Additional requirements
MinistryWorks by Brotherhood Mutual is a payroll and tax filing service, focused on the needs of churches and ministries.
- May 17, 2023
- 2022 Kingdom Builder Award: Tim Roddy Makes a Difference One Conversation at a Time
-
-
For Timothy Roddy, sales executive at Bitner Henry Insurance Group, building the Kingdom is as much a part of his life as breathing oxygen or eating breakfast. It isn’t a switch he turns on and off, but a habit embedded in his daily routines—both in his career and in his personal activities.
- July 22, 2021
- Thousands in Relief Funding Available to Ministries Through the Employee Retention Credit
-
-
Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.
- April 28, 2021
- Take Time to Review Your Ministry's Child Protection Plan
-
-
April is National Child Abuse Prevention Month. Though child abuse may not be something you could ever imagine happening within your ministry, sexual abuse of a minor is one of the top five reasons churches end up in court, according to Church Law & Tax. Studies also show that a child is much more likely to be sexually abused by a trusted adult than a stranger.
- February 25, 2021
- Catalytic Converter Theft on the Rise: Protect Ministry Vehicles
-
-
Did you know that the precious metal Rhodium is more than 10 times more valuable than gold? It has increased from $650 an ounce in 2015 to $22,000 an ounce in 2021.
- February 5, 2021
- Avoid Frozen Pipes as Temperatures Plummet
-
-
As temperatures plummet, the risk of freezing pipes soars. Frozen pipes can cause costly messes that could also put your ministry on hold while you clean up.
- November 23, 2020
- COVID-19 and the Christmas Season
-
-
Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.
- October 28, 2020
- Guidance for Ministries About Boy Scouts' Bankruptcy
-
-
A mid-November deadline in the Boy Scouts of America’s (BSA) bankruptcy proceedings may have you wondering what the organization’s bankruptcy filing means for your ministry if you ever hosted or chartered Boy Scout Troops.
- October 1, 2020
- Applying for PPP Loan Forgiveness
-
-
Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.
- September 29, 2020
- Meet our Minnesota Team!
-
-
Please allow us to introduce our team at American Church Group of Minnesota! We have three ministry insurance agents in the state. Here’s a little bit of information about each of them.
- July 21, 2020
- Tips for Beating the Summer Heat
-
-
Not only can summer heat be uncomfortable, but it can also pose a threat to your health. The heat can be especially dangerous for the elderly and for infants. Regardless of your age, don’t let the summer heat get the best of you!
- March 30, 2020
- CARES Act: Churches Need to Apply Now
-
-
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
- March 6, 2020
- Coronavirus and Your Ministry: Tips for Prevention
-
-
As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.
- January 29, 2020
- Hosting a Game Day Bash? Brush Up on Copyright Basics
-
-
The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.
- Are You Covered If You're Injured Overseas?
-
-
Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.
- IRS Announces More Church Audits Regarding ACA Compliance
-
-
Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.
- July 3, 2019
- Celebrate Safely This Independence Day
-
-
July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.
- June 28, 2019
- Insurance is one of those things we forget about until we need it
-
-
National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.
- April 9, 2019
- Vehicle Registration Guidelines for Ministries
-
-
Do you use commercial vehicles that transport more than 15 passengers or carry cargo from one state to another as part of your ministry? If so, you are required to register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT number.
- September 21, 2018
- Measles Reported in 21 States
-
-
The Centers for Disease Control says 107 cases of measles have been reported in 21 states since January 1.
- June 1, 2018
- June Is National Safety Month - Week 1: Emergency Preparedness
-
-
The National Safety Council has designated June as National Safety Month, so we want to make sure your ministry is doing everything it can to protect its people, property, and programs. Each week in June, we’ll tackle a different topic. Up this week: Emergency Preparedness.