The BASE® Qualified Small Employer Health Reimbursement Arrangement (QSE HRA) helps employers offer their employees a more attractive benefits package. Thanks to 2016 legislation, employers can help their employees pay for medical coverage for themselves and their families, tax-free. The amount provided is tax-free to the employees and 100% tax deductible to the employer.

With a QSE HRA, employees have the ability to secure their own medical insurance either on or off the Marketplace. This allows the employee to have an active role in finding the right medical coverage for their situation.

    Employers need to meet two qualifications to offer this arrangement to their employees:
  • Employer must have less than 50 Full-Time Equivalents (FTEs) employees
  • Employer must not offer a Group Health Plan to its employees

    The plan must be offered in the same terms and conditions to all “eligible” employees
  • 0 hours per week is the maximum eligibility criteria
  • 25 years of age is the maximum eligibility criteria
  • Maximum waiting period and entry period of 90 days

Where do the savings come from?

    Employees can use QSE HRA reimbursement money for the following:
  • Health insurance premiums
  • Co-pays
  • Deductibles
  • Eye care
  • Dental care
  • Other qualified 213(d) expenses

    Reimbursement amounts are based on marital status:
  • $4,950 for single
  • $10,000 for family
  • The amount of reimbursement may be prorated for newly eligible employees.