When Can an Employer Reimburse Individual Health Insurance Premiums?

Employer Reimbursement of Premiums?

Generally, under the Affordable Care Act (ACA), employers are prohibited from paying for or otherwise reimbursing an employee for any individual health plan premiums. This prohibition applies to applicable large employers (ALEs) and non-applicable large employers (non-ALES) alike. There are, however, limited situations where an employer may reimburse an employee for their health coverage cost outside of the employer’s sponsored plan.

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

A QSEHRA is a health reimbursement arrangement that allows certain small employers to reimburse its
employees for the cost of individual health plan coverage. To be eligible for a QSEHRA, the employer must
have fewer than 50 full-time equivalent employees and/or not be an ALE member group. Additionally, the
employer cannot offer a group health policy to any of its employees.

Other employer options include:

• Spousal Health Reimbursement Arrangement

• Medicare Reimbursement Arrangement

• Retiree Reimbursement Arrangement

• Opt-Out/Waiver Payment

Please call us if you have any questions or for help working with and navigating the 2018-2019 healthcare marketplace.

You can reach me at 925-552-7077 Office or 925-785-1161 Mobile.

Or email me at info@bernalinsurance.com.

This is a republished excerpt. Read more here at the article’s original source: https://www.onedigital.com/wp-content/uploads/2018/10/Infobrief_WhenCanEmployerReimburseIndividualPremiums-3.pdf