The IRS has released the updated contribution limits for Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) for 2027. Both the annual and monthly limits go up again, raising what small employers can contribute toward employee health insurance premiums and qualified medical expenses.
Starting January 1st, 2027, employers can reimburse up to $6,700 per year for self-only coverage and up to $13,550 for family coverage through a QSEHRA. That’s an increase over 2026’s limits of $6,450 (self-only) and $13,100 (family coverage).
| Coverage | 2027 Annual | 2027 Monthly | Increase from 2026 |
|---|---|---|---|
| Employee only | $6,700 | $558.33 | +$250 |
| Employee + family | $13,550 | $1,129.17 | +$450 |
These are maximums, not requirements. Employers can offer any amount up to the limit, which makes QSEHRAs a good fit for businesses with fewer than 50 full-time employees that want meaningful health benefits without the cost or complexity of a traditional group plan. With predictable budgets, tax advantages, and no annual renewal negotiations, QSEHRA remains one of the most flexible ways to support employees’ healthcare needs.
If you’re planning your 2027 benefits strategy, now is the time to review your options and see how a QSEHRA could fit into your compensation package. Learn more about QSEHRA through Benafica.