01
Set the allowance
The employer chooses a defined monthly reimbursement amount, creating a predictable benefits budget.
Small Business HRA
QSEHRA for small businesses
A Qualified Small Employer Health Reimbursement Arrangement helps eligible small employers offer meaningful health benefits with a budget they control.
How it works
A flexible alternative to a group plan
Instead of choosing one group policy, the employer funds a formal reimbursement arrangement and employees choose qualifying individual coverage.
02
Employees choose coverage
Employees select qualifying individual health coverage that fits their doctors, prescriptions, and family needs.
03
Reimburse eligible expenses
After expenses are verified, the business reimburses eligible premiums and medical costs up to the allowance.
Eligibility basics
Who may qualify
QSEHRA is designed for eligible employers with fewer than 50 full-time employees that do not offer a group health plan. Formal plan documents, employee notices, and reimbursement administration are required.
- The employer generally has fewer than 50 full-time employees.
- The employer does not offer a traditional group health plan to any employee.
- The arrangement is offered on the same terms to eligible employees, subject to permitted variations.
- Employees maintain qualifying health coverage to receive tax-free reimbursements.
See whether QSEHRA fits your team
We can compare QSEHRA with traditional small-group coverage, ICHRA, and other available options based on your team and budget.
Eligibility and tax treatment depend on current federal rules and your circumstances. Consult your tax or legal professional for advice.