What is a Qualified Small Employer Health Reimbursement Arrangement?
A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) is a plan designed to help employees 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.
Employers set aside money on a pre-tax basis — this means as long as employees use the money for qualified medical expenses, they won’t pay income taxes on it.
The QSEHRA is special in that it allows employees to pay for individual health insurance premiums that meet the Minimum Essential Coverage (MEC) requirements. The employer sets what expenses are qualified.