QSEHRA—A result of the 2017 bipartisan 21st Century Cures Act
- For small business with less than 50 employees
- Reimburses premiums and qualified medical expenses
- Contribution limits: $5,300 for single employees, $10,700 for families for 2021.
- Employer can design reimbursements to vary based on age, family size, status
- Participants must have MEC, otherwise they receive reimbursements as taxable income
- All full time employees are eligible to participate
- Cannot be offered with a group plan
- Funds roll over year to year as long as total doesn’t exceed maximum contributions.
- For employees eligible for premium tax credits, QSEHRA reimbursements reduce the tax credit dollar for dollar. Unfortunately, employees can’t opt-out.
