Cadence, BSIM3V3, and the Body Effect
Yes, connecting the body to the source eliminates the body effect. However, this may or may not be possible in your intended fab process. If you want to connect an NMOS source to its body, and you expect the bodies of different NMOS transistors to be at different voltages, you need to have a process with P-Wells. If instead the process uses a P-type wafer with N-Wells for the PMOS transistors then you can't isolate the bodies of the NMOS transistors.

You may not care, but connecting the sources to the bodies can also significantly increase the capacitance on the source nodes. The well-to-well spacing requirement will also make your layout larger.