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House Approves Legislation to Improve Health Care Coverage Options for Workers, Lower Administrative Burdens on Small Businesses

June 22, 2023

WASHINGTON, D.C. – Small businesses and workers looking for greater flexibility in their health care benefits will see fewer administrative burdens and improved choices under legislation passed this week by the House of Representatives. Job creators will be able to spend more time running their businesses with greater financial certainty while their workers will have more options to purchase the health care coverage that best meets their needs.

In his remarks during consideration on the House Floor of several bills that were previously approved by the House Committee on Ways and Means, Chairman Jason Smith (MO-08) highlighted how these solutions are based on feedback gathered in Committee hearings held in communities around the country during which small business owners shared their stories about the cost and time required to navigate America’s health insurance system:

On the CHOICE Arrangement Act (H.R. 3799): “The legislation before us today will help make life a little bit easier on small businesses. It allows them to provide more options to their employees when it comes to health insurance benefits.

“The CHOICE Arrangement Act gives small businesses more flexibility to provide health insurance benefits to current and future workers…Washington should not stand in the way of workers getting the health care coverage that’s best for them and their families. Just as important, workers should be able to take their insurance plan with them if they leave their current job.”

On the Paperwork Burden Reduction Act (H.R. 3797): “[O]nly 1.4 percent of American workers and their families may need to use this form…This bill saves small business owners time and money by relieving them of mailing outdated paperwork that only exists because Congress mandates it.

“And this mandate doesn’t even make sense anymore. The origins of this paperwork were to prove compliance with the individual mandate of the Affordable Care Act. A mandate whose enforcement was zeroed out years ago.

“Not only will small businesses have more time to focus on running a business, but this bill also recognizes how Americans actually file taxes. Now more than ever, Americans fill out their tax returns online. There is no reason that American workers should not be able to access this health insurance tax form online as well.”

On the Employer Reporting Improvement Act (H.R. 3801): “The bill before us today gives employers flexibility about what personal information they have to provide on behalf of their employees and their families. It extends the appeal window for any potential violation and establishes a statute of limitations so those small businesses – who have limited resources to begin with – can navigate these waters with less of a burden.”

H.R. 3799: CHOICE Arrangement Act (Hern-OK)

Gives small businesses more flexibility to provide employees with more health insurance options.

ONE-PAGER: CHOICE Arrangement Act

H.R. 3797: Paperwork Burden Reduction Act (Smith-MO)

Eliminates Congressional mandate requiring insurers and small businesses to prepare and mail outdated health insurance tax forms to millions of Americans that don’t need them.

  • Codifies the Treasury rule allowing for 1095-B forms available to be requested online.
  • Extends this flexibility to employers providing 1095-C forms, reducing unnecessary paperwork mandates while ensuring the form is still available to employees who may need it.

ONE-PAGER: Paperwork Burden Reduction Act

H.R. 3801: Employer Reporting Improvement Act (Smith-NE)

Reduces the burden on small businesses filing health insurance paperwork with the IRS.

  • Provides employers with flexibility in the personal information provided for employees, spouses, and children.
  • Provides employers with relief by extending the appeal window for a potential penalty to no sooner than 90 days to reduce burden on employers, especially small businesses with limited resources.
  • Reins in IRS bureaucrats’ ability to penalize American small businesses by implementing a six-year statute of limitations on assessing penalties.

READ: Smith-led Bill to Provide Relief to Employers Passes House of Representatives

ONE-PAGER: Employer Reporting Improvement Act