Qualified Small Employer Health Reimbursement Arrangements (QSEHRA) are a useful new option for small business owners and employers. A brand-new law is making it easier and more cost-effective to reimburse employees for the cost of individual insurance plans on a pre-tax basis.

What do you need to know to qualify for a QSEHRA plan?
  • You are a small employer (less than 50 employees).
  • You do not offer a group health plan to any of your employees.
  • The QSEHRA plan provides for reimbursement of insurance premiums and can provide (by plan design) for reimbursement of out-of-pocket medical expenses to all eligible employees.
  • Reimbursements are deductible to employer and tax-free to employees.
  • Employer needs a written Plan Document, a Summary Plan Description (SPD), and a Notice to Employees regarding coverage to implement the plan.

2018 Reimbursement Limits

  • $5,050 for employee
  • $10,250 for family coverage, if plan allows

If you would like to learn more if a QSEHRA is the right choice for your business, call one of our employee benefits administrators at (320) 214-2909.


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