To recognize small employer benefit arrangements as employers, and for other purposes.

Bill: 112-hr-3249
Sponsor: Rep. Andrews, Robert E. [D-NJ-1]
Introduced: 2011-10-24 in the House
Policy area: Labor and Employment
Subjects: Employee benefits and pensions
Health care costs and insurance
Income tax credits
Income tax deductions
Income tax exclusion
Small business

Summary:
action_date: 2011-10-24
text: 
Amends the Internal Revenue Code, the Employee Retirement and Income Security Act (ERISA), and the Patient Protection and Affordable Care Act to treat certain small employer benefit arrangements (SEBAs) as employers for the purpose of providing qualified retirement and accident and health plans or group-term life insurance.
 
Defines a SEBA as a member owned, democratically controlled cooperative organization that: (1) has at least 21 shareholders of whom 90% percent are in the same or similar line of business; (2) sponsors an accident and health plan for shareholder-members and any of their employees; (3) sponsors a qualified retirement plan meeting specified requirements and available to shareholder-members and their employees; (4) provides employee benefits pursuant to a written agreement; and (5) requires all benefit eligible employees of a shareholder-member to participate according to the same statutory eligibility criteria normally accorded them.
 
Treats the shareholder-members of a SEBA as employers for purposes of administering and allocating items of income, credits, deductions, or exclusions associated with the provision of employee benefits.
 
Prohibits treatment as a SEBA of any organization or related entity that is owned, in whole or in part, or managed or controlled in whole or in part, by any management agreement or certificates of indebtedness, directly or indirectly, or by: (1) any agents, brokers or providers of a health, life, or disability insurer; (2) a retirement plan service provider; (3) claim administrators; or (4) investment advisors.
 
Requires any group health plan established or maintained by a SEBA to be fully insured (thus prohibiting self-insurance).
 


Legislative actions:
action_date: 2011-11-18
text: Referred to the Subcommittee on Health, Employment, Labor, and Pensions.
action_date: 2011-10-24
text: Referred to the Committee on Education and the Workforce, and in addition to the Committees on Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2011-10-24
text: Referred to the Committee on Education and the Workforce, and in addition to the Committees on Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2011-10-24
text: Referred to the Committee on Education and the Workforce, and in addition to the Committees on Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2011-10-24
text: Introduced in House
action_date: 2011-10-24
text: Introduced in House