What is a QSEHRA?
A QSEHRA pronounced “Q-sehra stands for Qualified Small Employer Health Reimbursement Arrangement.
QSEHRA, also known as a small business HRA for employers with fewer than 50 employees is an employer-funded, tax-free health benefit used to reimburse employees for personal health care expenses.
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.