Since the long awaited passing of the 21st Century Cures Act in 2016, many employers and employees have been enjoying the repealed IRS ruling preventing standalone HRA plans. At the beginning of 2017, small employers that did not originally offer group health insurance, were given the opportunity to provide a tax-deferred reimbursement to their employees. This HRA, QSEHRA (qualified small employer health reimbursement arraignment) is still in effect and it allows employers who qualify, to offer a health reimbursement arrangement funded solely by the employer that reimburses employees for qualified medical expenses including health insurance premiums.
Employers and Employees who qualify for QSEHRA are outlined by the following requirements and limitations:
• An employer with less than 50 full-time employees that does not offer a group health plan to their employees qualifies.
• The Qualified Small Employer HRA must be provided on the same terms to all eligible employees. However, the Cures Act allows benefits under the HRA to vary based on family-size in order to help with varying health insurance plan costs.
• The maximum contributions for 2019 are $5,150 for individuals and $10,450 for families.
Here at BASIC, we are leaders in the complex health industry and we see the importance of partnering with companies to remain compliant. We offer a dynamic QSEHRA plan that not only allows employers stress free service, it offers employees transparency. We take care of the following:
• BASIC takes care of all plan documents, administration, and reimbursements.
• We show you how to legally assist employees with the cost of their individual premiums through defined contributions.
• We offer a flat annual fee; with no additional setup fees.
• Qualified Small Employer HRA participants are able to take advantage of BASIC’s quick reimbursement turnaround.
• We provide participants with an HRA summary explaining their plan. This summary also explains that participants are not eligible to receive subsidies for insurance purchased under an exchange for the months when they are covered by the employer’s HRA
By choosing BASIC, you can trust that your benefits will be as compliant as possible. We’re dedicated to our customers; your best interests are our best interests. Always remember to keep it BASIC.
If you’d like to learn more about BASIC’s QSEHRA Service, request a proposal here.