What is a QSEHRA?
A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) lets small businesses reimburse employees tax-free for individual health insurance premiums and medical expenses—without offering a group plan.
Key Features:
Tax-Free Reimbursements
No Group Plan Required
Contribution Limits
Covers Premiums & Expenses
All Employees Eligible
IRS-Compliant Solution
FAQ
Who can offer a QSEHRA?
Employers with fewer than 50 full-time employees who don’t offer a group health plan can establish a QSEHRA for their staff.
What expenses are reimbursable?
QSEHRA can reimburse employees for individual health insurance premiums and qualified out-of-pocket medical expenses, subject to annual IRS limits.
Are there contribution limits?
Yes, annual limits apply. For 2025, employers can reimburse up to $6,150 per individual or $12,450 per family.
Are QSEHRA benefits taxable?
No, QSEHRA reimbursements for qualified expenses are tax-free for employees and deductible for employers.