HRAs for Small Employers

Overview

In December 2016, the federal government introduced a new acronym to the field of employee health benefits and, in so doing, created a new option for small employers that want to be able to reimburse their employees for the cost of individual insurance plans and qualified medical expenses. These new plans are qualified small employer health reimbursement arrangements or QSEHRAs.

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.

Learning Objectives

Upon completion of this course, 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 QSEHRAstate 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

Designed For

Life and health insurance producers; financial planners and advisors
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