QSEHRA Reimbursements — Let a Very Small Employer Reimburse Health Costs Without a Group Plan
What Is It?
A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) lets an eligible small employer reimburse certain medical expenses and premiums without sponsoring a regular group health plan.
What Most People Don’t Know
- Only employers that do not offer a group health plan can generally use it.
- The arrangement must be provided on the same terms to eligible employees, subject to allowed variations.
- Getting the setup wrong can turn the arrangement into a noncompliant group health plan problem.
Frequently Asked Questions
Can a company offer both a regular group health plan and a QSEHRA to current employees?
A: IRS Notice 2017-67 explains that offering another group health plan to current employees generally disqualifies QSEHRA status.
Can QSEHRA money reimburse individual-market premiums?
A: Yes, subject to the notice and substantiation rules.