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QSEHRA Benefit Details

How does an QSEHRA work?

Allows small employers to provide non-taxed reimbursement of certain health care expenses, like health insurance premiums and coinsurance, to employees who maintain minimum essential coverage, including an individual Marketplace plan.

What are the limits for QSEHRA in 2021

In 2022, small businesses may offer up to $5,450 per self-only employee and up to $11,500 per employee with a family.

Does QSEHRA plans cover dental and vision?

Yes, dental and vision premiums and expenses can be reimbursed through a QSEHRA. However, remember that an employee must have medical insurance that qualifies as minimum essential coverage (MEC) in order to participate in the QSEHRA at all.

What is MEC - Minimum Essential Coverage?

Minimum Essential Coverage is defined as the type of health insurance coverage that you must have in order to comply with the individual mandate set forth by the Affordable Care Act (ACA) . From January 1, 2014, and onward, individuals must have MEC insurance or they will be subject to a tax penalty.