QSEHRA
Candlefocus EditorThe QSEHRA allows employers to set annual budgets to reimburse employees for qualified medical expenses up to a certain dollar amount. These budgets are based on a monthly allotment per employee, and can be tailored to individual needs or used to offset health insurance deductibles or uncovered medical costs. The good news is that QSEHRAs are flexible and can be adjusted to meet the financial needs of both employer and employee.
The QSEHRA is a great way to reimburse employees for medical expenses related to medical and pharmacy costs, dentist visits and vision care, mental health treatment and preventive health treatments. Eligible expenses are most expenses allowed as deductions under Section 213(d) of the Internal Revenue Code.
For businesses, QSEHRA offers valuable tax breaks: the employer contributions to employee health reimbursement accounts are 100% income tax deductible, and the amounts received by employees do not count as income. This means both employers and employees benefit from reduced taxes.
What’s more, QSEHRA reimburses eligible expenses faster than health insurance. On average, employers can expect reimbursement to employees within a week, considerably faster than the months of waiting time experienced by those processing reimbursement claims through health insurance.
In summary, the QSEHRA is an attractive and cost-effective health reimbursement plan for small businesses. It allows employers to adjust budgets to provide flexible employee coverage options related to medical costs, while also offering tax benefits to employers and employees. It is easy to use and eliminates the wait time inherent in most health insurance reimbursement programmes.