Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

Setting up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) can be advantageous for certain groups compared to an Individual Coverage Health Reimbursement Arrangement (ICHRA) due to specific circumstances and needs. Here's a concise summary of why a group might opt for a QSEHRA over an ICHRA: 

QSEHRA: 

• Small Business Focus: QSEHRA is designed for small employers with 1 to 50 full-time employees. If your group falls within this size range and is looking to offer healthcare benefits without the complexity of larger-scale arrangements, QSEHRA could be a suitable choice. 
• Simplified Eligibility: All full-time employees and their families are automatically eligible for QSEHRA benefits. This streamlined eligibility process can be advantageous for small businesses looking to provide benefits without extensive administrative burdens. 
• Annual Contribution Limits: QSEHRA comes with predefined annual contribution limits. In 2023, small businesses can contribute up to $5,850 for individual coverage and up to $11,800 for employees with dependents. If these limits align with your budget and benefits goals, QSEHRA might be a straightforward option. 
• Part-Time Inclusion: QSEHRA can extend eligibility to part-time employees, provided they receive the same allowance as full-time employees. This can be valuable for businesses with a mix of full- and part-time staff. 

Consider QSEHRA When: 

• You are a small business with limited resources and wish to offer basic healthcare benefits. 
• Your group size falls within the range of 1 to 50 full-time employees. 
• You prefer predefined annual contribution limits that align with your budget. 

If you want more information about QSEHRA, contact our ICHRA Support Team at 781-228-2222, option 4 or email us at ichra@hsainsurance.com.