Qualified Small Employer HRAs
(QSEHRAs)
This page
features general information on the following topics regarding qualified small
employer health reimbursement arrangements (QSEHRAs):
- Overview
- Eligibility Rules
- Contribution Rules
- Distribution Rules
- Written Notice Requirement
- Form W-2 Reporting Requirement
- PCORI Reporting Requirement
- Noncompliance Penalties
- Additional Information
Overview
QSEHRAs are
health reimbursement arrangements exempt from the ACA's market reforms. To be a QSEHRA, the arrangement generally
must:
- Be funded solely by an
eligible employer without salary reduction contributions;
- Provide—after an eligible
employee provides proof of minimum essential coverage—payment
or reimbursement of qualified medical expenses (which includes premiums
for other health coverage, such as individual health insurance)
incurred by the employee or his or her family members;
- Limit annual payments and
reimbursements to $4,950 per employee (increased to
$5,050 for 2018) or $10,000 per family (increased to $10,250
for 2018), and prorated where coverage is less than the entire
year; and
- Be provided on the same
terms to all eligible employees.