QSEHRA Archives - EZ.Insure

What is QSEHRA?
How Does QSEHRA Work?
Who Qualifies for QSEHRA?
How Much Are Employers Allowed to Contribute to a QSEHRA?
What Medical Expenses Can QSEHRAs Cover?
Benefits of Offering a QSEHRA
QSEHRA vs. Traditional Group Health Insurance
How to Setup a QSEHRA for Your Small Business
FAQs
Get Started with Your QSEHRA Today

What is QSEHRA?

A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) is a health benefit alternative to traditional health care, tailored to businesses with less than 50 full-time equivalent (FTE) employees. Rather than providing a standard group health insurance plan, companies offering QSEHRA can reimburse employees tax-free for their individual health insurance premiums and other qualified medical expenses.

QSEHRAs stands as a flexible, economical alternative to group health plans, allowing small businesses to offer employees important medical benefits without the complexity of traditional coverage.

How Does QSEHRA Work?

Employers Establish a Monthly Allowance: Small business owners get to decide up to how much money they pay back to their staff each month for premiums and medical expenses. The IRS establishes annual limits each year that the employer reimbursement amount must stay within (for 2025, the IRS annual limit is $6,350 for individuals and $12,800 for families).
Employers Buy Their Own Health Insurance Plans: Whether it’s through a private insurer, the Marketplace or other sources, employees purchase their own health plans based on individual and/or family preferences.
Employees Submit Health Expense Claims to Their Employer: Next, employees submit expense claims to their employer for reimbursement. Expenses include their insurance premiums and other qualified medical costs.
Employers Reimburse Their Employees Tax-Free: Employers reimburse their workforce up to the predetermined monthly amount, after reviewing the submitted expenses. Employees receive their reimbursements tax-free and they are tax-deductible for the employer. Employers generally have a 90 day period to reimburse employees for qualified expenses.

EXAMPLE: An employer sets a monthly QSHERA allowance of $350. If an employee purchases a health plan that costs $250 per month, they would get reimbursed for the entire $250 each month, tax-free. The remaining amount (in this case $100, could be used for other qualified medical expenses).

Who Qualifies for a QSEHRA?

Employer Eligibility

Have less than 50 full-time equivalent employees.
Does not offer a traditional group health insurance plan such as SHOP plans or flexible spending accounts (FSA).
Offers QSEHRAs to all eligible employees on the same terms (the reimbursement limits must be the same for everyone, though they can vary based on individual versus family coverage).

Employee Eligibility

Employees need to have minimum essential coverage (MEC) in order to qualify for tax-free reimbursements. Minimum essential coverage simply means their health insurance benefits must meet the Affordable Care Act’s (ACA) mandate standards.
Part-time and seasonal workers can be excluded if the employer chooses to do so.
Employees need to work for the business for at least 90 days before becoming eligible.
Spouse and dependent expenses are eligible for reimbursement, as long as they’re included on the employee’s health plan.

How Much Are Employers Allowed to Contribute to a QSEHRA?

The IRS sets yearly limits on the amount that employers can reimburse employees for premiums and medical expenses through a QSEHRA.

For 2025 the maximum annual reimbursement amount is $6,350 for individuals (roughly $529.16 per month), and $12,800 for families (about $1,066.66 per month).

It’s important to note that the figures above are simply maximum annual reimbursement amounts. Employers are allowed to set their annual amounts lower, but the structure must remain the same for all employees.

What Medical Expenses Can QSEHRAs Cover?

A QSEHRA can reimburse employees for the following expenses:

Health insurance premiums (health, dental and vision premiums)
Prescription and over-the-counter medications
Doctors visits
Hospital bills
Preventive care
Dental and vision expenses
Medical equipment or supplies
Mental health services
Chiropractic services
Copays and Deductibles
Alternative/holistic treatments

To qualify for reimbursements, employees must provide proof of the expenses to their employer or plan administrator.

A QSEHRA generally won’t reimburse employees for the following expenses:

Premiums for a group health insurance plan that’s provided by a spouse’s employer.
Premiums associated with a parent’s health insurance policy.
Any expenses that aren’t recognized as qualified medical expenses by the IRS.

Benefits of Offering a QSEHRA

Tax Benefits: Employees receive reimbursements tax-free, while employers can deduct them from their taxes.
Cost Control: By establishing their own reimbursement limits, employers avoid unexpected spikes in premiums costs.
Employee Flexibility: Rather than being limited to a group health insurance plan that’s selected by their employer, employees can choose the health policy that best suits their needs.
Simple Administrative Process: Since employees select their own plans, there is no group renewal process, group administration, or the need to negotiate with carriers or brokers.
Helps Recruitment and Retention Efforts: Reimbursing employees for the majority or all of their healthcare needs is a great way to attract new talent, and keep current employees satisfied.

QSEHRA vs. Traditional Group Health Insurance

*Feature*	*QSEHRA*	*Traditional Group Health Insurance*
Employee Size Requirement	Less than 50 employees	More than 1 employee
Employer Contribution	Employee sets monthly reimbursement limits	Employer pays a portion of premium costs (usually a fixed percentage)
Predictability of Cost	Employer only reimburses the qualified submitted expenses	Premium costs are fixed, but may increase each year
Employee Plan Choice	Employees choose their own plan	Employees enroll in a pre-selected employer-provided plan.
Compliance Requirements	Employees must have minimal essential coverage to qualify for reimbursements.	Must comply with the ACA, COBRA, ERISA, etc.

How to Setup a QSEHRA for Your Small Business

Establish a Monthly Budget: Set a monthly reimbursement cap with the IRS required limit.
Create a Plan Document: Outline details such as eligibility, coverage and reimbursement details. An EZ insurance professional can help you do this!
Inform Employees: Provide workers with a written notice regarding the QSEHRA, that includes the information you documented in step 2.
Administer and Manage the Plan: Use a specialized software or third-party administrator to ensure compliance, and manage reimbursements.
Monitor and Modify Annually: Evaluate the plan, and employee satisfaction on yearly basis to remain competitive.

FAQs

Are employees required to enroll in an ACA marketplace plan to use a QSEHRA?

No, employees that are enrolled in a health insurance plan that meets minimum essential coverage can use a QSEHRA. This includes ACA marketplace plans, or plans purchased directly through an insurer.

Can employees opt out of a QSEHRA?
Yes, employees are never required to participate in QSEHRA, but if opted-out, they won’t receive any medical expense reimbursements.

What happens if an employee’s monthly insurance premiums cost more than their QSEHRA allowance?

In this case, the employee would have to pay the remaining portion out of pocket.

Can employers offer both a QSEHRA and a group health plan?

No, if a business already offers group health insurance plans, they can’t offer a QSEHRA.

What’s the difference between a QSEHRA and an ICHRA?

While only businesses with less than 50 employees qualify to use a QSEHRA, ICHRAs allow businesses of any size to reimburse employees for insurance premiums and qualified medical expenses. Additionally, ICHRAs do not have set contribution limits, while QSEHRAs have limits set each year by the IRS.

What’s the difference between offering a QSEHRA and offering a health stipend?

A QSEHRA provides employees with tax-free reimbursements for health expenses and reimbursements are tax-deductible for employers. On the other hand, a health stipend is simply extra money employees receive each month to use for health-related purposes. Health stipends are considered taxable income for employees and offer no tax advantages for business owners. Additionally, QSEHRAs must follow IRS regulations, and employees must submit proof of expenses.

Get Started with a QSEHRA Today!

A QSEHRA is a fantastic option for small businesses looking to provide their employees with comprehensive health benefits, without the high cost and hassle of a traditional group health plan. Employers and employees tend to love the flexibility they each have with QSEHRAs, since they’re affordable for almost any business budget, and employees are empowered with choice of coverage.

Interested in setting up a QSEHRA for your small business? EZ.Insure makes the process quick and simple, offering you professional guidance so your plan’s ready in just a few minutes! Enter your ZIP code below to learn more or call us directly at (844)-770-0064.

Small business benefits, also commonly referred to as group benefits, give businesses a way to offer employees quality healthcare and long-term planning perks at an affordable cost. The term “small business” simply refers to EZ.Insure’s specialization in businesses with fewer than 50 employees, but don’t worry— even if your company has 50+ employees, we have access to insurance plans that meet the needs of any business size.

Whether you’re a new company looking to establish your first employer-sponsored health plan, or are simply aiming to enhance your team’s current benefits package, EZ.Insure makes the process quick, easy, and affordable.

Laptop screen displaying "Employee Benefits" with icons representing health, email, calendar, and financial tools, symbolizing small business health insurance and employee benefit options. Text overlay reads "Small Business Benefits Overview" from EZ.Insure

Small Business Health Insurance

Small business health insurance provides essential health coverage to employees of a company. This type of insurance generally costs much less for employees as opposed to an individual plan, as insurance rates tend to go down when larger groups are insured together. These plans are highly customizable for small businesses as they can be tailored to meet a variety of specific needs and budgets. In addition to providing key health benefits to employees, studies show that employers who offer health insurance have an easier time attracting and retaining top industry talent.

Want to learn more? Check out our full, in-depth Small Business Health Insurance Guide.

Small Business Dental Insurance

Dental insurance is an insurance add on that covers all of your routine dental care such as cleanings, X-rays, fillings, and major procedures like crowns or root canals. The great thing about dental insurance is that many plans cover preventive dental care services at 100%, making it easy and affordable to keep your oral hygiene in tip-top shape. Dental insurance is typically purchased as an add-on to health insurance since the Affordable Care Act does not require healthcare plans to cover it. Even so, employers frequently offer both perks in aims to provide a more well-rounded benefits package that covers all of the bases.

Want to learn more? Check out our full, in-depth Small Business Dental Insurance Guide.

Small Business Vision Insurance

Small business vision insurance, is an employee benefit that’s generally added-on to employer-sponsored health insurance and covers a variety of routine eye care services. These services include annual eye exams, prescription lenses, eye contacts, and sometimes even corrective eye procedures like LASIK surgery. Since poor vision is something that can significantly impact job performance and overall well-being, offering it to employees tends to increase overall job satisfaction and employee productivity. Additionally, it generally costs $15 or less per month per employee to offer vision insurance, making it an affordable and appealing complement to a typical health benefits package.

Want to learn more? Check out our full, in-depth Small Business Vision Insurance Guide.

Small Business Life Insurance

A small business life insurance policy is a necessity for anyone with loved ones who depend on them. This type of policy is commonly added on to employee benefits packages and works by providing an employee’s loved ones (beneficiaries) with funds in the case of an unexpected death. There are multiple types of life insurance policies all of which function slightly differently. These include:

Term Life Insurance: Provides coverage for a set number of years only, and pays out a death benefit if the employee passes away during that time.
Permanent Life Insurance: Includes “Whole Life Insurance” and “Universal Life Insurance” and “Final Expense Insurance,” all of which remain in effect for the entirety of your life, and never need to be renewed, as long as you pay your premiums.

Employers can choose to fully cover the cost of employee life insurance, or offer it as a voluntary benefit where employees pay part or all of the premium cost. No matter how it’s set up, small business life insurance provides employees and their families with peace of mind, knowing that they’ll be financially stable in the case of an untimely death.

Want to learn more? Check out our full, in-depth Small Business Life Insurance Guide.

QSHERA (Qualified Small Employer Health Reimbursement Arrangement)

QSEHRAs stands as a flexible, economical alternative to group health plans, allowing small businesses to offer employees important medical benefits without the complexity of traditional coverage.

Want to learn more? Check out our full, in-depth QSEHRA Guide.

ICHRA (Individual Coverage Health Reimbursement Arrangement)

An Individual Coverage Health Reimbursement Arrangement, commonly referred to as an ICHRA, is a benefit funded by employers that reimburses employees for health insurance premiums and qualified medical expenses. Unlike traditional health plans, where employees are limited to one or a few pre-selected coverage options, ICHRAs let workers choose the plan of their choice, and then receive tax-free reimbursements for the plan’s cost.

While Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) exist only for businesses with less than 50 employees, ICHRAs can be offered to businesses of any size. All in all, ICHRAs serve as a great alternative to traditional group health insurance, as they provide more flexibility to employees, while helping employers manage costs efficiently.

Want to learn more? Check out our full, in-depth ICHRA Guide.

Level-Funded Plans

A level-funded health plan is one type of employer-sponsored health insurance that offers business owners more flexibility and savings potential compared to traditional, fully-insured health plans. Level-funded plans are created by combining aspects of self-funded and fully-insured health insurance, helping small businesses manage high healthcare costs, while also providing employees with quality benefits.

Unlike traditional health plans, with level-funded plans business owners incur some of the financial risks for claims. On the flip side, level-funded plans present the opportunity for refunds, if claims are lower than expected. Level-funded plans also commonly provide business owners with stop-loss insurance, which helps to pay for claims that are higher than anticipated.

Want to learn more? Check out our full, in-depth Level-Funded Health Plans Guide.

Self-Funded Plans

A self-funded health plan, also known as a self-insured health plan, is a type of employer-sponsored insurance where business owners incur the financial risk of employee health claims. Instead of paying a monthly premium to health insurance companies, with self-funded plans, employers set aside their own money to cover employee medical expenses as they arise.

Unlike level-funded and fully-insured plans which have fixed monthly payments or premiums, with self-funded plans employees only pay for actual employee claims that occur. This presents the opportunity to save funds that are unused at the end of the year, but also could mean paying more out-of-pocket, if claims are higher than expected. Stop-loss insurance is also commonly paired with self-funded plans to help keep out-of-pocket costs in check if claims are higher than expected.

Want to learn more? Check out our full, in-depth Self-Funded Plans Guide.

Fully-Insured Plans

A fully-insured health plan is a traditional employer–sponsored insurance plan, where businesses pay a set monthly premium to an insurance provider who takes full responsibility for all employee medical claims. Fully-insured plans decrease the amount of risk that employers take on, since the insurance company covers all claim payouts, no matter how many total claims are filed.

Fully-insured plans are a great option for small businesses as they offer stability, since monthly premium costs always remain the same. Additionally, they are generally easy to manage and comply with all Affordable Care Act (ACA) regulations, making them a great choice for companies seeking predictable prices, and minimal administrative work.

Want to learn more? Check out our full, in-depth Fully-Insured Health Plans Guide.

Get Small Business Benefits Today with EZ.Insure!

EZ.Insure has all the tools you need to get a small business health insurance plan, or other employee wellness benefits. No matter what your budget and preferences are, we can find a plan that works for you. Our platform offers free, no-obligation quotes, side-by-side plan comparisons and 24/7 access to licensed insurance agents. To get started, simply enter your ZIP code below or give us a call at (844)-770-0064.

If you have more specific questions regarding any of our small business benefits, be sure to check out our Small Business Benefits FAQs section!

W-2 Requirements for a QSEHRA

If you decide to offer a qualified small business health reimbursement arrangement (QSEHRA) to your employees, you might have some questions about how to report the benefits on your employees’ W-2s. The IRS requires employers to report these benefits, including how much each employee is entitled to receive in reimbursements in a calendar year. There are different variables to consider when it comes to filling out your W-2s, such as what you need to do if an employee did not participate in the QSEHRA or how to report carryover amounts, so let’s go over the most important things that you need to be aware of.

Reporting QSEHRA Benefits On the W-2

paper with tax incentive in the middle and a computer mouse and pen over the papers. — *You can report your QSEHRA contributions on the W-2 form in Box 12.*

If you have an employee who is participating in your offered QSEHRA, you must report the total amount of the employee’s permitted benefit on Form W-2 in Box 12, using Code “FF.” The IRS description for this code is: “Permitted benefits under a qualified small employer health reimbursement arrangement.” This benefit is not counted as taxable income for the employee.

It is important to note that over-the-counter medications used to require a prescription for reimbursement. However, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed in March 2020, has made over-the-counter medications eligible for reimbursement without a letter from a doctor or prescription. The medications should be reported on the W-2 Form as income in box 1 as well as in box 3, Social Security wages, and box 5.

Calculating The Benefits

When reporting on your W-2s, the permitted benefit amount should include only newly available QSEHRA funds. Any carryover amounts from previous years should not be included. However, if you use a non calendar-year QSEHRA, you will need to report a prorated amount.

Take the following example of a QSEHRA with a plan year that runs from August 1 to July 31:

For the plan year beginning August 1, 2020, a QSEHRA benefit of $3,000 was available to every employee for August 1, 2020 through July 31, 2021. The amount reported on the employee’s 2020 Form W-2, box 12, code FF is $1,500 (for August-December 2020).
In the new plan year (2021), the QSEHRA provides $3,500 to every employee for August 1, 2021 through July 31, 2022. The amount reported on the employee’s 2021 Form W-2, box 12, code FF is $3,250 ($1,500 for January-July 2021, and $1,750 for August-December 2021).

What About Carryovers?

When a QSEHRA has a carryover provision, only the newly available amounts are reported. If the QSEHRA allows for the use of carryover amounts from prior years, those amounts are not included in the amount reported for the current year. For example, if your employee has a remaining allowance of $1,000 in their QSEHRA allowance for 2020 and they receive $3,000 for the following year, only the $3,000 in new funds will be reported on their 2021 Form W-2 in box 12, Code FF.

What If An Employee Didn’t Participate?

Even if an employee did not participate in your QSEHRA, the benefits must still be reported on the employee’s W-2. You will report the amount of benefit that they were entitled to receive.

What About Employees With No MEC?

Employees who do not have the required minimum essential coverage (MEC) can still receive reimbursement through the QSEHRA, but will have to pay income tax on it. Specifically, any taxable reimbursements should be included as other compensation in box 1: Wages, tips, and other compensation.

If you issue a QSEHRA reimbursement and then later learn that the employee did not have MEC for the period in which the reimbursement occurred, the employee must repay the reimbursement as soon as possible.

However, if W-2 reporting is required before the employee has repaid the amount, that amount is taxable to the employee:

The amount must be included in the employee’s gross income on Form W-2, box 1.
The amount is not subject to FICA tax and should not be included in box 3, Social Security wages, or box 5, Medicare wages.

Have Questions?

If you choose to provide a QSEHRA to your employees, great! They are an excellent way to help your employees get the healthcare they need. But know that you will have to report these reimbursements on your W-2s, and it is important that you do it correctly in order to abide by the QSEHRA’s guidelines. If you need help exploring different types of small business HRAs, or have questions about offering healthcare in general, EZ can help. We will compare quotes, answer any questions and even sign you up for a plan at no cost to you. To get started, simply enter your zip code in the bar above, or to speak directly with an agent, call 888-998-2027.

How To Cancel Your Group Insurance

Despite the fact that health insurance is an important and very popular employee benefit, many small business owners have been canceling their group insurance policies. For some business owners, even the tax credits that are meant to help provide coverage to employees do not offset the price of group insurance enough. For other business owners, the problem might be not enough participation in their group insurance plan, because employees are choosing to purchase individual coverage. We know that this can present a dilemma to many small business owners; after all, you want to make sure that your employees are healthy and happy. Remember you have other options to provide healthcare to your employees. So if you do decide to cancel your group insurance plan, you should first understand what other health benefits you can offer employees, as well as how to cancel your group plan.

Canceling Your Group Health Insurance Plan

The good news is that you can cancel your group health insurance plan if you really need to. Most group health insurance plans are a unilateral contract, meaning that you can cancel your plan at any time during the year. Some carriers require you to provide 30 days notice, but this is not always necessary. Be aware that some insurance carriers have penalties if you do decide to cancel early.

To get a better understanding of your carrier’s cancellation process, take a look at your contract; in fact, it is always a good idea to be fully aware of this information before you sign up for any plan. To get the cancellation process started, you will need to call a customer representative at your insurance company. Once you’ve spoken with a representative, you will usually need to confirm your cancellation in writing, either by letter or fax; some companies will even accept an email. Be sure to confirm exactly what you need to do to cancel your coverage so you will not be billed for the following month.

While you have every right to cancel your group insurance benefits, you should be aware that, under the Affordable Care Act, you are required to give employees at least 60 days advance notice prior to the cancellation date. This will allow them to take advantage of their 60-day Special Enrollment Period and choose a new insurance plan.

Signing Up For A HRA

HRA written on a paper with a stethoscope and black highlighter next to it — *You can offer your employees other benefits, such as a HRA, and choose from different kinds that would benefit you and them more.*

Even if you choose to cancel your traditional group health plan, you still have other options for helping your employees pay for healthcare. For example, you can choose to offer them a Health Reimbursement Arrangement (HRA). HRAs have been growing in popularity among employers because of their flexibility and lower costs when compared with traditional group healthcare. With these arrangements, you give employees a set monthly amount to spend on their own health insurance policy. Your employees have the option to use this allowance to buy their own individual health insurance plan and get reimbursed for qualified health insurance premiums up to the amount of their reimbursement allowance. The are a few different types of HRAs to choose from, including:

QSEHRAs (Qualified Small Employer HRAs) are for businesses that have fewer than 50 employees. In order for employees to receive the tax-free reimbursement, they must have an individual health plan and submit a claim. With a QSEHRA, you can choose the monthly reimbursement amount, but you must offer the same amount to all employees, and there are set limits on how much you can reimburse them each month.

ICHRAs (Individual Coverage HRAs) are for businesses of any size. With these arrangements, you can create “classes” of employees, such as part-time or full-time, and offer them different monthly reimbursement amounts. With an ICHRA you can offer as much money as you would like; there is no limit on monthly reimbursement amounts.

ICHRAs are especially popular because you can customize them to meet your company’s needs. You can choose any monthly reimbursement amount, as well as whether to reimburse your employees for premiums only or premiums and qualified medical expenses. You can also choose whether to structure reimbursement the same for all employees or to vary the amount by family size.

Keeping Your Employees Notified

As mentioned above, you will have to notify your employees once you decide you are going to cancel your group insurance policy. If you choose to offer your employees a HRA instead, make sure to keep your employees in the loop about this as well. This is especially important if you decide to offer a QSEHRA, as they will need to have their own individual health plan to participate. Your employees might feel like they are “losing” healthcare if you switch from a traditional group plan to a HRA, so make sure to thoroughly explain the HRA that you chose and its benefits. There will also be new rules for them to get used to.

If you choose to switch to a HRA, explain to your employees:

How the HRA works
The benefits of a HRA, such as more flexibility
How to request reimbursement

Need Help?

If you’re looking to save some money and are ready to ditch your group health insurance plan, the first thing you should do is come to EZ.Insure. We will provide you with your own agent who will assess your business’ needs, and suggest ways to offer your employees the best health benefits possible without breaking the bank. When you use EZ.Insure, you will save time, money, and the headaches that come from trying to research and compare all the different plans out there. EZ understands how important it is to save money, which is why we will instantly compare all available plans in your area for free. To start saving, simply enter your zip code in the bar above, or to speak directly to an agent, call 888-998-2027.

Sole Proprietor Participation in HRAs

Employers who have trouble providing their employees with a traditional group health insurance plan sometimes turn to health reimbursement arrangements (HRAs) to help. HRAs are not health insurance, they are employer-funded accounts approved by the IRS that help employees pay for qualified out-of-pocket medical expenses. They can also help pay for their individual health insurance plan’s premiums. HRAs work through a reimbursement system. Employers offer employees a monthly allowance of tax-free money that they can use to pay for healthcare services, including health insurance, and then the employer reimburses them up to their allowance amount. But what if you’re a sole proprietor? You can offer this arrangement to any employees you have, but can you participate in the savings from an HRA yourself? In short, generally no, but there is a way you might be able to!

HRA Rules

Offering an HRA is a great way to help pay for your employees’ healthcare costs; these arrangements give you more control over how much you’re spending, and can help to lower your healthcare costs. HRAs only need to be funded when employees who participate in them incur expenses, and not all employees who participate will incur expenses up to the limit established by the employer. Any unused funds in the HRA stay with you, the employer.

There are also tax advantages to HRAs: any reimbursements made to your employees are tax deductible for you and tax-free for your employees. HRAs are only available to:

Current and former employees, and their spouses.
Covered tax dependents.
Children who will not be 27 years old by the end of the tax year.
Unfortunately the IRS does not separate you and your business, which makes you ineligible to participate in an HRA.

Sole Proprietorship

As a sole proprietor, according to the IRS, there is no separation between you and your business. The Internal Revenue Code Section (IRC) 401(c) determines that owners who are self-employed individuals are not considered employees. This makes them ineligible to participate in a HRA. Ineligible owners include partners, sole proprietors, and more-than-2% shareholders in a Subchapter S corporation.

However…

If you are married and your spouse is listed as a W-2 employee at your business, then there is a way for you to get a HRA, and enjoy all of its tax benefits. To work around the rule set by the IRS, you can set up a HRA in your spouse’s name and list yourself as a dependent of your spouse. However, this will only work if you don’t hire any other W-2 employees who would be eligible for either an ICHRA, QSEHRA or a One-Person 105 HRA. What you can do is:

Hire your spouse as a W-2 employee, and make their salary the amount you want to reimburse through the HRA.
Make your spouse the primary policy holder on your family health insurance plan.
Become a dependent on your spouse’s health insurance plan.
Set up a One-Person 105 HRA, ICHRA, or QSEHRA for your spouse. Consider:
- The One-Person 105 option if you have medical expenses or other employees that are excludable under the rules.
- A QSEHRA if your health expenses are less than the reimbursement limit under the QSEHRA rules.
- An ICHRA if the reimbursement limit of a QSEHRA is too restrictive, since there are no limits on ICHRA contributions.
Save all of your medical bills so your company can reimburse them each month from a separate account.

Get Help

To make sure that you are following the rules laid out by the IRS properly, it would be wise to speak with an insurance agent. EZ’s agents are highly trained and knowledgeable in the group health insurance industry, and can help you determine if participating in an HRA is possible for you. To find out if you are eligible, and to compare plans in your area for free, enter your ZIP code in the bar above, or to speak directly to an agent, call 888-998-2027.

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