Design compliant reimbursements

QSEHRA allows employers to reimburse employees tax-free for health insurance while keeping their budget in check. To design a compliant QSEHRA plan, there are two simple rules an employer must follow:

Rule 1: Your plan's reimbursement rates must be less than the following maximums:

You can reimburse less than these amounts, you just can’t go over them. These numbers are tied to inflation so we expect them to increase a bit each year.

  2018 2019
  Single Family Single Family
Annual $5,050 $10,250 $5,150 $10,450
Monthly $420 $854 $429 $870

Rule 2: You must offer your QSEHRA plan fairly to employees

The IRS calls this the “same terms requirement”. If you want to vary your reimbursement rates, the IRS provides to methods that still meet the same term requirements: reference plan or percentage basis. You can read more in the Reimbursement Rules section of our QSEHRA Guide.

To make your life easier though, we’ve built a calculator to help you design a compliant plan.

QSEHRA Plan Designer

How would you like to structure your QSEHRA plan reimbursements?

Select an option below:

  Single Employee Employee + Spouse Employee + Kids Employee + Family  

Ready to launch your QSEHRA?

Get up and running in 2-3 minutes with our online QSEHRA Designer and Administration platform. Save money on taxes and offer your employees tax-free benefits.

  • QSEHRA Plan Designer
  • Automatic Compliance
  • Free Legal Documents
  • Tax Reporting
  • Receipt Tracking
  • Employee Onboarding & Support
  • Mobile Friendly
  • No setup fees, No Contracts

QSEHRA Plan FAQs

Here are some commonly asked questions about how our QSEHRA reimbursement plan calculator works.

More QSEHRA FAQs

How does the plan designer work? What are the assumptions?

When the options "all the same" or "maximum reimbursement" are selected, the designer applied the appropriate rates to each employee category.

When "Vary by Family Size" is selected, the plan designer uses two methods described by the IRS to suggest compliant rates:

  1. Percentage Method - Employees are offered a percentage of the maximum available to them. 
  2. Reference Plan Method - Employees are offered a reimbursement amount that corresponds to what their premiums would be on a specified reference plan.

For the Reference Plan Method, the designer is using rules based on the Second Lowest Cost Silver Plan (SLCSP) in a given area. SLCSPs are used to calculate tax-credits. These are general rules and not tied to a specific reference plan, but should be very close. Check local plans in your area for more reference options.

Can I vary reimbursements by age?
According to the QSEHRA guidelines, yes. However, practically we've found this method to get cumbersome for small employers looking to setup a QSEHRA. Connect with one of our QSEHRA design experts using the menu below and we'd be happy to talk through it with you.
What happens if employees don't use all of their reimbursement?

If employees don't use all of their QSEHRA allowance in a given month, the balance will roll-over to the next month but the funds remain with the employer. At the end of the year, the employer can decide whether or not to roll year-end balances over to the next year or reset. Any unused funds remain with the employer.

Here's a helpful article that explains more about how unused QSEHRA balances are handled.

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The Team