What is a Qualified Small Employer Health Reimbursement Arrangement?
A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) is a plan designed to help you pay for qualified medical expenses. It is specifically designed for companies with fewer than 50 full-time employees and is funded solely through employer contributions.
Your employer sets aside money on a pre-tax basis — this means as long as you use the money for eligible expenses, you won’t pay income taxes on it.
The QSEHRA is special in that it allows you to pay for individual health insurance premiums that meet the Minimum Essential Coverage (MEC) requirements. Check with your employer to find out what other medical expenses are qualified and remember to document each expense.