Small employers that do not offer any group health plan may now adopt a Qualified Small Employer Health Reimbursement Arrangement to reimburse employees for premiums they pay for individual insurance policies.
QSEHRA Plan Document Package
As a result of the 21st Century Cures Act that was signed into law in December of 2016, small employers are now permitted to reimburse employees for premiums paid for individual health insurance policies, effective January 1, 2017, under a new type of plan called a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). Prior to the new law, these types of arrangements had been prohibited by the Affordable Care Act (ACA).
Since small employers – defined as having less than 50 full-time equivalent employees – were not subject to penalties for failing to provide group health plan coverage under the ACA, many opted out of providing coverage to their employees because they found it cost prohibitive to do so. Yet, many still wanted to help their employees with their individual health care premiums. The QSEHRA is one way for small employers to provide health insurance assistance to their employees.
Several requirements need to be met for the plan to qualify as a QSEHRA. In order to help small employers easily and efficiently adopt a QSEHRA, Houston Harbaugh’s Employee Benefits/ERISA Practice is pleased to make available a plan document package containing all of the documents needed to properly establish a QSEHRA. Included in the package are:
- a plan document compliant with all requirements of the new law,
- the special QSEHRA notice required to be provided to employees, and
- a Summary Plan Description meeting ERISA disclosure requirements.
The plan document package is not “one-size-fits-all.” Preparation of the QSEHRA plan document requires the employer to make several elections. Regardless of the elections chosen, the document package is offered at a flat fee rate. For more information or to request the QSEHRA plan document package, contact Gary J. Gunnett at firstname.lastname@example.org or 412-288-2210.
It is important to note that QSEHRAs are an exception to the ACA requirements and are not part of the ACA. Even if the ACA is repealed and replaced, it is expected that QSEHRA’s will remain valid.
To purchase a QSEHRA Plan Document Package, contact:
To learn more about the QSEHRA requirements, read:
New Law Permits Employers to Reimburse Employees For Individual Health Insurance Premiums