What is QSEHRA?
A practical guide for small employers
QSEHRA (pronounced “Q-Sarah” for fun) is a new, more efficient way for small businesses and non-profits to offer health insurance to their employees. It’s a game-changer that many are just now discovering.
To cut quickly through the insurance jargon (it stands for “Qualified Small Employer Health Reimbursement Arrangement” by the way), a QSEHRA allows small employers to set aside a fixed amount of money each month that employees can use to purchase individual health insurance or use on medical expenses, tax-free. This means employers get to offer benefits in a tax-efficient manner without the hassle or headache of administering a traditional group plan and employees can choose the plan they want.
Quick summary: Employees pay for health expenses, you reimburse them tax-free
The mechanics of a QSEHRA are surprisingly simple. At a high-level, employees pay for their own health expenses and you reimburse them. Here’s how it works:
Employers design their plan and set reimbursement allowances
Employees pay for their own health insurance and medical bills
Employees provide proof of their expenses
Employers reimburse the employee up to the set limit
The key to note is payments are reimbursements. Employees will pay the insurance company or doctor’s office directly and then submit a claim to get reimbursed for their expenses tax-free.
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.takecommandhealth.com/qsehra-guide
