Medical Plans For Small Business

Unlike standard HRAs, a QSEHRA does not have to be paired with a health insurance plan offered by that employer.Businesses offering a QSERHA may not offer a group health plan to any of their employees. Think of this as your monthly bill – the amount you must pay the health insurance company, on-time each month or you may lose coverage.

Instead, an employer can set up a QSEHRA and reimburse the medical expenses of their employees, including premiums for health insurance acquired in the individual market.

To receive reimbursements, employees must first show proof of their other minimum essential coverage.

You pay this even if you don't use healthcare services that month.

If you choose a plan with a lower premium, expect to pay more for prescriptions and healthcare services.

If your employees will be getting health insurance in the individual market, offering a QSEHRA could be detrimental to them.

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Employees who would be eligible for tax credits through the Exchange will either lose eligibility for tax credits entirely or have their tax credit reduced by the amount of the QSEHRA contribution.

For employees to participate in the HRA, they must also be enrolled in the insurance plan offered by the employer.

An is a tax-favored bank account set up in an employee’s name and collects pre-tax contributions from both the employer and the employee, to be used to pay medical expenses of the employee and their dependents.

For 2018, contributions to QSEHRAs are capped at ,050 annually for employee-only coverage and ,250 for family coverage.

Employers are cautioned to consider the financial impact a QSEHRA could have on employees’ premium costs.


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