BASE® QSE HRA

Eligibility

Employers can rest assured that they have a compliant benefit option when group health insurance is no longer an option with the QSE HRA.

All funding must come from the employer – no salary deductions or other employee deductions
Must report any QSE HRA funds provided to an employee on Box 12 Code DD of the employee’s W-2 (nontaxable)
Summary Plan Description & Plan Documents must be provided since this is an HRA
Three specific notices must be given 90 days prior to plan start, in addition to the SPD. (IRS Issued Notice 2017-20 February 27, 2017 that doesn’t require furnishing notices until after further guidance issued.)

Must secure individual insurance with minimal essential coverage (MEC)
Must report any QSE HRA dollars when applying for coverage on the Exchange
May impact their ability to obtain a subsidy
Must report to the employer any months that they are not covered by a MEC plan
Must produce verification of payment of monthly premiums and any other OOP expenses