With the QSEHRA benefit, small employers are able to reimburse their employees tax-free for their health insurance premiums and medical expenses. Under the benefit, the employer sets a maximum monthly allowance (in accordance with IRS contribution limits) each employee is eligible to receive. One question we hear repeatedly from employees is “what happens to my monthly allowance if I do not claim the full amount each month?”
Here's what to know about what happens to your QSEHRA monthly allowance when the QSEHRA maximum reimbursement isn't met for the month.
Is my unclaimed money lost?
Remember, the QSEHRA is a reimbursement tool, not a savings account. The rollover amounts are allowances that can only be claimed for reimbursement, there are no options for a cash payout of unused funds. At the end of a calendar year, any unclaimed allowance will be lost so it is best to save your receipts and enter your expenses as soon as you can!