A QSEHRA, pronounced Q-sarah, 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.
How does QSEHRA work for employers?
Employee advantages: Customizable healthcare with QSEHRA
For employees, QSEHRA presents an opportunity to select individual health plans that best fit personal needs, with the added benefit of reimbursements. This flexibility is a significant advantage over traditional group plans, offering a more personalized approach to healthcare.
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