Small Business Healthcare Relief Act of 2014

“(e) Pre-Tax Dollars for Qualified Health Plans

“(1) In general—Amounts paid by an eligible small employer on behalf of an employee of the employer for premiums for a qualified health plan (as defined in section 1301 of the Patient Protection and Affordable Care Act)—

“(A) which covers the employee, employee’s spouse, or any dependent of the employee, and

“(B) which is offered in the individual market within a State,

“(2) Eligible small employer—For purposes of this subsection and subsection (f), the term “eligible small employer” means an employer who—

“(A) is not an applicable large employer (as defined in section 4980H(c)(2)(A)), and

“(B) does not offer its employees any group health plan other than an arrangement described in paragraph (1) or subsection (f).

“(3) Certain controlled groups—All employees who are treated as employed by a single employer under subsection (b), (c), or (m) of section 414 shall be treated as employed by a single employer for purposes of this subsection.”

“(f) Qualified health reimbursement arrangements

“(1) In general—Amounts paid by an eligible small employer on behalf of an employee of the employer to a qualified health reimbursement arrangement shall be treated as employer-provided coverage for medical expenses under an accident or health plan and shall not be considered a group health plan for purposes of section 9815.

“(2) In general—For purposes of this subsection, the term “qualified health reimbursement arrangement” means an arrangement—

“(A) under which the employee may be reimbursed—

“(i) for premiums for a qualified health plan (as defined in section 1301 of the Patient Protection and Affordable Care Act) which covers the employee, employee’s spouse, or any dependent of the employee, and is offered in the individual market within a State, and

“(ii) for expenses incurred for medical care (as defined in section 213(d)) of the employee, the employee’s spouse, or any such dependent of the employee,

“(B) which is provided by an eligible small employer, and

“(C) under which contributions by the employer with respect to an employee for the taxable year are not in excess of the dollar amount in effect under section 125(i) for such taxable year (200 percent of such amount in the case of family coverage).

“(3) Certain controlled groups—All employees who are treated as employed by a single employer under subsection (b), (c), or, (m) of section 414 shall be treated as employed by a single employer for purposes of this subsection.”

“(iii) Pre-tax dollars for a qualified health plan and Qualified health reimbursement arrangements—The term “coverage month” shall not include any month during which an individual is covered under a qualified health plan any premiums for which were reimbursed under an arrangement described in section 106(e) (relating to pre-tax dollars for a qualified health plan), or under a qualified health reimbursement arrangement (as defined in section 106(f)), during a calendar year which includes such month.”

“(H) An arrangement described in section 106(e) (relating to pre-tax dollars for a qualified health plan).

“(I) Qualified health reimbursement arrangement (as defined in section 106(f)).”