Qualified Small Employer HRA (QSEHRA)

70% of small employers do not offer health insurance and had no other option to help their employees. The 21st Century Cures Act opens the door for affordable healthcare for millions of Americans.

The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) allows qualified employers to reimburse employees’ individual health insurance premiums and eligible Section 213(d) medical expenses tax-free.

Interested in learning more about the QSEHRA? Contact our Customer Service Team at (314) 909-6979 or info@beneflexhr.com or listen to our pre-recorded webinar and see if a QSEHRA is right for you!

Benefits of Offering a QSEHRA

  • Competitive advantage in the marketplace for employers to attract and retain workforce
  • Ability to offer an employee benefit without the overhead of a group medical plan
  • Employee may purchase any Marketplace insurance offering or an individual health insurance plan with minimum essential coverage
  • HRA reimbursements are tax-free to the employer and employee
  • Employer and employees enjoy cost savings in a difficult healthcare environment
  • Section 213(d) medical expenses are paid only if expenses are incurred by the employee
    • If no expenses are incurred, the employer keeps the funds that expire each year

QSEHRA IRS Regulations 

  • Employers with less than 50 full-time or full-time equivalent employees
  • No group health insurance plan offered to employees
  • Plan funded solely by employer contributions
  • Reimbursements may only be made to employees who provide “proof of coverage”
  • Reimbursement available for qualified insurance premiums and eligible Section 213(d) medical expenses
  • IRS maximum HRA reimbursement is $4,950 for single and $10,000 for family coverage annually
  • Reimbursements must be offered on same terms to all employees
  • IRS guidelines prohibit sole proprietors, partners, members of an LLC, and 2% or more shareholder of an S-corporation from participating in the plan