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Barbara Weltman

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QSEHRAs Reimbursements Increasing

April 6, 2023 / By Barbara Weltman

Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) are a way for companies with fewer than 50 employees to enable staff to buy their individual health coverage through premium reimbursements and cover out-of-pocket costs. There’s an annual limit on reimbursements (for 2023, it’s $5,850 for individual coverage and $11,800 for family coverage), but employers can and do offer more modest amounts. PeopleKeep’s 2023 QSEHRA Annual Report found that in 2022, companies with QSEHRAs offered an average monthly allowance of $412, a 2.5% increase from 2021. Last year, 10% of employers offered the maximum reimbursement amount. Small employers without any health plans in place and that want to offer something can begin a QSEHRA at any time during the year. For more information see IRS Notice 2017-67.  #IdeaoftheDay

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