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

    Employer Requirements
  • 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.)

    Employee Requirements
  • 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