Glossary Term


QSEHRA is the acronym for a Qualified Small Employer Health Reimbursement Arrangement. By means of a QSEHRA, a small business—those with less than 50 full-time equivalent employees—may reimburse employees’ premiums for minimum essential coverage (as defined by the Affordable Care Act), including traditional ACA-compliant individual market insurance. In contrast to an ICHRA, an employee who enrolls in a QSEHRA may still receive a premium tax credit, although it would be reduced based on the QSEHRA contribution. Congress set a maximum amount QSEHRAs could reimburse, which equals $6,150 for single coverage and $12,450 for family coverage in 2024. These amounts are indexed to inflation annually.

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