HRAs for Small Employers

This course provides an overview of the new health benefit plans that certain small employers may offer to their employees: qualified small employer health reimbursement arrangements, or QSEHRAs. The course explains the purpose, function, features, and benefits of these plans, as well as the requirements they impose on sponsoring employers and participating employees. Significantly, QSEHRAs allow employers to pay for their employees’ health insurance premiums on a tax-free basis. For this reason—and others—it is expected that these plans will be popular with the small employer market, notably for employers that find traditional group health plans unaffordable or ill-suited for their business and employees.

This is an intermediate level course. Upon completion, students will be able to:

  • demonstrate an understanding of the events that led up to QSEHRAs
  • explain the conditions that must be met to implement a QSEHRA
  • state the requirements that both sponsoring QSEHRA employers and participating QSEHRA employees must meet
  • cite the benefits and limits of a QSEHRA plan
  • describe how QSEHRA benefits are coordinated with premium tax credits for  marketplace exchange plans
  • demonstrate an understanding of other health reimbursement arrangements that may be suitable for small employers: health savings accounts with HDHPs and flexible health spending accounts
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