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How To Set Up and Self-Administer a 2025 QSEHRA for $199
By Gene Ennis
Core Documents can show you how to set up and self-administer the QSEHRA for $199. The main goal of the QSEHRA was to allow for employer tax-free reimbursement of individual non-group health insurance to employees without group health insurance options.
The QSEHRA is for employers with fewer than 50 FT employees that do not offer a group health insurance plan or a Health FSA. All employees who are eligible must participate.
See a short video about the new HRA at https://www.coredocuments.com/qsehra/
See the IRS Guidance that allows the QSEHRA at https://www.irs.gov/pub/irs-drop/n-17-67.pdf
All QSEHRA participants must have Minimum Essential Coverage (MEC); see a list of qualifying MEC health insurance below.
Anyone receiving an Exchange Advanced Premium Tax Credit or PTC (discount, subsidy, reduced premium) will be required to report the new benefit; this will reduce the Exchange Premium Tax Credit/discount/subsidy dollar for dollar. Employees cannot opt out of coverage just because they don’t want to disturb their Exchange PTC premium discount. The QSEHRA benefit is reported on the W2 as non-taxable benefit dollars.
The QSEHRA is currently discounted to $199 from $299 in a one-time fee. The Plan Document only needs to be updated when there are changes in the Code or ACA law, or if you want to change the Plan eligibility or benefit offering.
For 2025, the maximum allowed annual benefit is $6,350 per employee electing individual coverage, and $12,800 per employee electing family coverage.
There are several key rules to follow. Rather than re-write them please see a 3 part series on eligibility and rules:
1) https://www.coredocuments.com/qse-hra-guidance-eligibility-terms-limits-and-notice-requirement/
2) https://www.coredocuments.com/qse-hra-guidance-coverage-reimbursement-and-marketplace-coordination/
3) https://www.coredocuments.com/qse-hra-guidance-failure-to-satisfy-hsa-interaction-and-effective-date/
See a list of qualified Minimum Essential Coverage health plans: https://www.coredocuments.com/health-plans-that-qualify-as-mec-for-qse-hra-plans/
The 90 Day Notice creates an open enrollment option at the Exchange; this can be a big deal too to anyone outside the annual open enrollment period.
Brochure: https://www.coredocuments.com/wp-content/uploads/2017/12/Core-QSE-HRA-Qualified-Small-Employer-HRA-Plan-Documents-Forms.pdf
Online encrypted order form: https://www.coredocuments.com/user/HHRA.php