All employees may shop for an individual plan and determine their eligibility for financial assistance through is a vehicle that allows an employer to reimburse medical expenses of employees and their dependents.
Generally, HRAs must be 100% funded with employer contributions, integrated with a health insurance plan offered by the employer, and in compliance with ACA rules (e.g., no annual benefit limits).
For many employees, coverage in the individual market may be more affordable without a QSEHRA, so they can take full advantage of federal tax credits for health insurance coverage.
A small business employer is one that employed ( on average during the prior calendar year ) 1–50 full-time employees.
For 2018, contributions to QSEHRAs are capped at $5,050 annually for employee-only coverage and $10,250 for family coverage.
Employers are cautioned to consider the financial impact a QSEHRA could have on employees’ premium costs.Employees may purchase their own individual health insurance plan to cover themselves and their family members.If your employees do not have access to an affordable employer-sponsored health insurance plan, they may be eligible for federal tax credits to help them pay for an individual plan.It can be used as a business taxable expense and generally have bigger provider networks and are richer in plan benefits.Employees look for companies that offer group health insurance coverage.Sole proprietors, partners, and owners of a corporation are generally not considered an employee even if the owner performs services for the business for compensation.However, an owner may participate in a group plan as long as the group employs at least one common law employee that is enrolled in the plan (W-2 employee) , and offers the group health plan to all full time employees.Unlike standard HRAs, a QSEHRA does not have to be paired with a health insurance plan offered by that employer.Businesses offering a QSERHA may not offer a group health plan to any of their employees.Then we help you build a sustainable, winning benefits strategy that is designed to improve individual health and employee productivity while achieving long-term cost savings.Once the plan is in place, we're there when you and your employees need us.