QSEHRA’S “qualified small employer health reimbursement arrangement”

The 21st Century Cures Act mostly addresses pharmaceutical issues, but it also contains a provision that makes insurance costs easier to bear for small companies. As explained by the Society for Human Resource Management, the new law lets companies with fewer than 50 full-time employees or equivalents that don’t sponsor a group health plan to fund health reimbursement arrangements. The SHRM noted that federal rules have prevented these companies from using “stand-alone” HRAs to reimburse employees who buy non-group health coverage.

The law creates the “qualified small employer health reimbursement arrangement.” These QSEHRAs will allow small employers to reimburse workers $4,950 for singles and $10,000 for families, to be adjusted annually for inflation. With a few exceptions, companies that use QSEHRAs must offer them to all full-time employees. In most cases, employers must make the same contributions for all eligible employees, although they can adjust amounts based on the price of a policy in the relevant individual health insurance market.

Of course, like so much having to do with healthcare, this provisions may be moot if the Affordable Care Act is replaced or repealed. Be sure to keep on top of the latest rules and laws before making a decision.

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