Small employers looking for big benefits
QSEHRA
QSEHRA Administration, Giving Small Businesses Affordable Employee Benefits
Qualified Small Employer HRA with Minnesota Experts
QSEHRA, a small business HRA for employers with fewer than 50 employees, is an employer-funded, tax-free health benefit used to reimburse employees for health insurance premiums and personal health care expenses. Benafica is Minnesota’s local QSEHRA administration expert with state-of-the-art technology to make every step of the process manageable.
Qualified Small Employer Health Reimbursement Arrangements (QSEHRA’s) began in the marketplace in 2017 and continue to grow in popularity year after year.
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| QSHERA | Single | Family |
|---|---|---|
| 2024 Annual Contribution | $6,150 | $12,450 |
| 2024 Monthly Contribution | $512.50 | $1,037.50 |
| Note: Unclaimed funds remain with the employer. |
In determining how much an employer should set their reimbursement amount at, there are a few things to keep in mind. The main point is that it must be done fairly within each defined category.
Options include:
- Reimburse all employees the same amount.
- Reimburse all employees the maximum amount they are eligible for.
- Reimburse different amounts based on family size.
- Reimburse different amounts based on employee age.
Employers can choose for their QSEHRA to reimburse for:
- Insurance Premiums only. This includes individual health insurance, dental premiums, vision premiums, etc, as long as the employee has Minimum Essential Coverage (MEAC). Employers can also choose if they want to reimburse employees for participating on their Spouse’s group health insurance plan.
- Insurance Premiums + Qualified Medical Expenses. Eligible expenses include doctor visits, copays, dental cleanings, etc. See the entire list of options in IRS Publication 502.
Download our FREE QSEHRA Reimbursement Cheat Sheet.
Employee classes for reimbursement include
- Past-time employees
- Seasonal employees
- Employees under 25 years old at the start of the QSEHRA plan year.
QSEHRA pronounced “Q-sehra”
How does it work?
The employer designates which reimbursable expenses will be approved. The employer will then select one or multiple job classes and set a contribution amount per class. Once the terms of the plan are chosen a per employee per month amount of money will be set aside. Then after an employee pays for a designated reimbursable expense, they can submit for reimbursement.
What does this mean for Employers?
This means that employers can control how much they are contributing to employee benefits each year, while still being able to off competitive and tax-free benefits to their employees.
What does this mean for Employees?
If you’re an employee and your employer is switching to an QSEHRA, it means you will have the flexibility to find an individual health plan that fits you best, and will be reimbursed for it. This is great news, as this an extremely customizable option to a group plan.
If you think an HRA might be right for your business contact Benafica today. For upcoming events and other information, follow us on LinkedIn.
