WASHINGTON, D.C. – U.S. Rep. Mike Thompson’s (CA-5) bipartisan legislation, the Small Business Healthcare Relief Act, was signed into law on Tuesday by President Barack Obama after passing the Senate last week.

The bill was included as a provision of the 21st Century Cures Act, a health care package that also included funding to fight opioid addiction and support for cutting edge medical research, among other things.

Thompson’s legislation allows small employers to continue offering Health Reimbursement Arrangements, or HRAs, to help workers offset the cost of health insurance.

Employees can use HRA accounts to pay insurance premiums, or to pay for qualified health expenses. By offering HRA’s, small businesses who are not obligated to provide health insurance can help their workers purchase quality insurance plans that fit their individual budgetary and healthcare needs.

The legislation comes in response to a 2013 Treasury Department ruling that disqualified HRAs as a tax-free method of reimbursing employees.

“I am proud to see my Small Business Healthcare Relief Act become law,” said Thompson. “This bipartisan legislation will help small employers in our district and around our country continue to do right by their employees, ensuring that workers have access to the quality and affordable care they need.”

Thompson’s HRA legislation is budget-neutral, meaning it won’t add a single dollar to our deficit.

The bill is supported by the United States Chamber of Commerce, the National Federation of Independent Business (NFIB), the National Association of Manufacturers (NAM), the Retail Industry Leaders Association (RILA), the National Association of Homebuilders (NAHB), the National Association for the Self-Employed, and the Coalition for Affordable Healthcare (CAHC). The bill originally passed the House of Representatives in June as H.R. 5477.

In addition to funding efforts to combat opioid addiction, the 21st Century Cures legislation also provides more than $4 billion in funding for the National Institutes of Health, to support Vice-President Joe Biden’s Cancer Moonshot initiative, and for improvements to our mental health system.

“I am similarly pleased at the signing of the larger 21st Century Cures Act,” Thompson said. “This important legislation provides funding for many health initiatives I support – including Vice-President Biden’s Cancer Moonshot, increased Alzheimer’s research, and improvements in our mental health system. It’s critical that our country promote innovative health policies and research, and I look forward to supporting similar efforts in the future.”

Congressman Mike Thompson represents California’s Fifth Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma counties.