Services

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

Small employers can reimburse their employees for health insurance premiums and medical expenses, tax-free!

Proud small business owner

QSEHRA allows small employers (fewer than 50 full-time-equivalent [FTE] employees) to set aside a fixed amount of money each month that employees can use to purchase individual health insurance or use on medical expenses, tax-free. This means employers get to offer benefits in a tax-efficient manner without the hassle or headache of administering a traditional group plan and employees can choose the plan they want.

How it works

The mechanics of a QSEHRA are surprisingly simple. At a high-level, employees pay for their own health expenses and you reimburse them. Here’s how it works:

  • Employers design their plan and set reimbursement allowances
  • Employees pay for their own health insurance and medical bills
  • Employees provide proof of their expenses
  • Employers reimburse the employee up to the set limit

The key to note is payments are reimbursements. Employees will pay the insurance company or doctor’s office directly and then submit a claim to get reimbursed for their expenses tax-free.

Tri-Star Service Highlights:

  • For businesses not offering group coverage with fewer than 50 FTE employees
  • Automated QSEHRA benefit compliance
  • Reimburse health insurance premiums as well as out-of-pocket medical expenses
  • Vary allowances by family status
  • No minimum employer contribution requirements
  • Automated QSEHRA employee reimbursement limit management

QSEHRA Features:

  • Online benefits portal for administrators and employees
  • Automated benefit compliance documents
  • Dedicated customer success manager for administrators
  • Employee onboarding and education
  • Employee access to team of personalized health benefits experts
  • Expense review and verification
  • HIPAA medical privacy law compliance
  • Premium and expense verification within 2 business days
  • Mobile access for user-friendly expense documentation upload