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[\/et_pb_text][et_pb_divider divider_weight=”2px” _builder_version=”4.18.0″ _module_preset=”default” width=”100px” module_alignment=”center” custom_margin=”||||false|false” locked=”off” global_colors_info=”{}”][\/et_pb_divider][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_font=”Red Hat Display|600||on|||||” header_font_size=”43px” header_letter_spacing=”1px” header_line_height=”1.3em” header_2_font=”Red Hat Display|700||on|||||” header_2_font_size=”35px” header_2_letter_spacing=”1px” header_2_line_height=”1.3em” text_orientation=”center” max_width=”800px” module_alignment=”center” header_font_size_tablet=”40px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]<\/p>\n
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Small employer HRAs or QSEHRAs (Qualified Small Employer Health Reimbursement Arrangements) allow small businesses without group health plans to set aside money, tax-free, for employees to use toward medical expenses – including the cost of buying health insurance.\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”15px||7px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”http:\/\/159.89.85.181\/wp-content\/uploads\/2022\/10\/Health-Care-Computer-scaled.jpg” title_text=”Health Care – Computer” align=”center” _builder_version=”4.18.0″ _module_preset=”default” width=”41%” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”10px|||||” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Included in the 21st Century Cures Act enacted by Congress on December 13, 2016, was a provision for QSEHRAs, which permit an eligible employer to provide a qualified small employer health reimbursement arrangement (QSEHRA), which is not a group health plan and thus is not subject to the requirements that apply to group health plans.<\/p>\n QSEHRAs must meet several criteria such as:<\/p>\n Any small employer from a startup to a nonprofit that doesn’t offer a group health plan is able to set up a QSEHRA as long as they meet certain rules (see below). Small employers are defined as an employer that is not an applicable large employer (ALE). An applicable large employer is defined as one that employs more than 50 full-time workers, including full-time equivalent employees, on average.<\/p>\n <\/p>\n If a small employer currently offers a group health plan but wants to set up a QSEHRA, the group health plan must be canceled before the QSEHRA will start.<\/p>\n <\/p>\n<\/blockquote>\n Yes. One of the most important rules is that in order for employees to participate in a QSEHRA, they must have health insurance that meets minimum essential coverage. That is, indemnity, short-term health insurance, and faith-based insurance plans (e.g., Liberty HealthShare) do not qualify. Health insurance plans purchased through the Marketplace meet this qualification. Employers may choose whether to reimburse employees for both medical expenses and health insurance premiums or just premiums.<\/p>\n Furthermore, while there are no minimum monthly contribution limits, there is an annual maximum contribution limit. For 2022, the limit is $454.16 per month for individuals and $920.83 per month for families.<\/p>\n <\/p>\n QSEHRAs are funded entirely by the employer. As such, employees are prohibited from making contributions.<\/p>\n <\/p>\n<\/blockquote>\n Eligible employers are required to provide written notice to eligible employees at least 90 days before the beginning of a year for which the QSEHRA is provided. In the case of an employee who is not eligible to participate in the arrangement as of the beginning of the year, the written notice must be furnished on the date on which the employee is first eligible. The written notice must include:<\/p>\n If you have any questions about QSEHRAs or are wondering whether your small business would benefit from a QSEHRA, don’t hesitate to call.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Subscribe” _builder_version=”4.18.0″ _module_preset=”default” background_color=”rgba(230,230,230,0.41)” global_colors_info=”{}” global_module=”172″ theme_builder_area=”post_content”][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”4.16″ _module_preset=”default” background_color=”#ffffff” custom_padding=”27px|20px|27px|20px|true|true” custom_padding_tablet=”40px||40px||true|true” custom_padding_phone=”” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_font_size=”18px” header_2_font=”Red Hat Display|700||on|||||” header_2_font_size=”28px” header_2_line_height=”1.3em” header_2_font_size_tablet=”34px” header_2_font_size_phone=”22px” header_2_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_code _builder_version=”4.18.0″ _module_preset=”default” module_alignment=”center” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\nBackground<\/h3>\n
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Which Employers Qualify?<\/h3>\n
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Are There Any Other Rules?<\/h3>\n
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Written Notice to Employees<\/h3>\n
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Questions About QSEHRAs?<\/h3>\n
Sign Up for Our Insights<\/h2>\n