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Qualified Small Employer HRA QSEHRA

We'll focus on your benefits, you focus on your small business

New to benefits and don't know where to start? Reimburse employees tax-free with the industry’s only Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) platform with hands-on enrollment support specially designed for small business health insurance. 

  • Manage benefits for an hour or less per month
  • Offer health insurance on your budget & save on taxes
  • Boost recruitment & retention in a tight hiring market.
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qualified small employer health reimbursement arrangement

Take Command makes QSEHRA simple and easy.

Flexible Designs

No more one-size fits all plans! QSEHRA plans can be customized and designed to achieve you or your clients’ goals and are more flexible with what types of plans they will reimburse.

Simple Administration

Take Command will automatically generate the documents your employees need and can help them search for and enroll in a plan online.

On-Ramp to Benefits

80% of our small business clients are net new to benefits. QSEHRA is an affordable, simple way to offer scalable benefits to your team on your budget.

Learn More

Did you know that 80% of our small business clients are new to benefits?

Our QSEHRA Guide will walk you through how this benefits solution might work for your business.

award-winning qsehra administrator

Join the 5,000+ businesses saving on health benefits with Take Command

Union Orthotics and Prosthetics

"Facing a 40% renewal, our broker introduced us to the idea. Take Command provides the tools there for everybody to enroll in very easy formats on the platform."

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Taro Health

"To attract and maintain talent, we needed benefits. Managing our ICHRA has been simple and hands-off. I spend two hours a month managing and administering it."

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"Take Command has made it simple to set up and administer the small business HRA for StreamCare and we highly recommend it to other small businesses."

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What You Need to Know About Qualified Small Employer HRAs QSEHRAs

If you’re a small business looking to offer employee health benefits, QSEHRAs can be exactly what you need. 

So, what is a QSEHRA? QSEHRA stands for Qualified Small Employer Health Reimbursement Arrangement. It’s a Health Reimbursement Arrangement (HRA) that allows small business employers to set aside money each month that employees can use to cover their health insurance and qualified medical expenses. 

And if you’re wondering if QSEHRA reimbursements are taxable– you’re in luck because they’re not! Qualified Small Employer HRAs (QSEHRAs) offer this fixed reimbursement amount tax-free, which benefits the employee and employer. Employers get to let their employees decide what health insurance plan works best for them and their families, rather than picking a one size fits all group plan. This saves businesses the hassle of trying to organize and administer a traditional group insurance plan that may not work for everyone.

QSEHRA Definition: What does QSEHRA Stand For?

The QSEHRA definition is simple– it’s a tax-efficient reimbursement plan for offering health insurance to your small business employees. 

A few quick notes before we dive into the nitty-gritty of all things QSEHRA:

QSEHRAs are designed for small businesses with a maximum of 50 employees.

The source for funding a QSEHRA comes from the employer, and it’s quite simple: 

  • Employers set reimbursement allowance limits.
  • Employees pay for their health insurance plans and medical bills. 
  • Employees submit proof of their health insurance expenses. 
  • Employers reimburse employees for these expenses up to their max limit.

QSEHRA providers sometimes find self-administration of a QSEHRA to be time-consuming and difficult (like all health insurance offerings!) But HRA administrative partners are in place to eliminate this headache.

QSEHRA plan administrators (like Take Command) provide an easy way for your company to offer a QSEHRA while ensuring compliance with privacy and legal guidelines. 

As a relatively new way for small businesses and non-profits to offer competitive health insurance benefits to employees, QSEHRAs aren’t as widely known. But companies discovering the benefits and ease a QSEHRA can offer now don’t know where they’d be without one in place. 

Now, let’s get into more detail on why offering a Qualified Small Employer HRA is right for your company. 

How much will you save with a QSEHRA?

Since QSEHRA reimbursements are tax-free, small business owners can enjoy considerable savings. Check out our QSEHRA tax savings calculator to get a savings estimate.

QSEHRA eligible expenses

When offering a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), employers can decide what to reimburse. This means you can offer your employees reimbursement for insurance premiums only, or you can reimburse them for insurance premiums and qualified medical expenses

QSEHRA-eligible expenses include doctors visit, visit copays, dental exams and cleaning, eyeglasses, or necessary medications and/or medical supplies. 

What can QSEHRA funds be used for? 

  • Reimbursement for health insurance premium costs 
  • Reimbursement for medical visits 
  • Reimbursement for prescription medications 

QSEHRA Requirements 

QSEHRA reimbursement is easy for employees and employers, especially with a user-friendly HRA administration platform. Our Take Command QSEHRA platform takes care of compliance with HRA-eligible expenses, making the process seamless and simple. Employees just have to snap a picture of their expenses, and simply upload it to our platform for reimbursement from their QSEHRA. 

QSEHRA requirements for the employer include being a “small business” as defined by the IRS. This means 50 employees max. QSEHRA plans also require your business to NOT have a group plan. The purpose of QSEHRAs is to reimburse employees for their individual health insurance plans, not a group. 

QSEHRA requirements for the employee to receive tax-free reimbursements include having individual health insurance coverage. Employees also must submit claims for reimbursement to QSEHRA administrators for eligible expenses. 

As a QSEHRA administrator, there are QSEHRA contribution limits that are necessary to comply with. The 2023 QSEHRA contribution limits are: 

  • Individuals $5,850 or ($487.5/month)
  • Family $11,800 or ($983.33/month)

Let's do this!

Begin designing your QSEHRA plan today and be set up in minutes. You could start reimbursing your employees tax-free sooner than you think.


QSEHRA rules 

As with any employee benefits offering, employers must comply with QSEHRA rules and regulations. As mentioned above, there are QSEHRA employer requirements to comply with. QSEHRAs can only be offered to businesses with less than 50 employees, and they must not offer a group plan.

If your business already has a group health plan but you’re looking to switch to a QSEHRA, you can cancel your group plan at any time, not just at open enrollment. 

  • Employers have a few options when deciding on QSEHRA reimbursement. When it comes to what the QSEHRA can reimburse, the employer can decide: 
  • To reimburse all employees the same amount 
  • To reimburse all employees the maximum amount eligible 
  • To reimburse different amounts based on family 

QSEHRA Administration

With all these decisions, utilizing a QSEHRA administration platform is helpful. Self-administered QSEHRAs can come with headaches for employers because of the time spent ensuring the company is following all the QSEHRA rules appropriately. So, it’s best to offload this task onto a trusted HRA administrator. 

QSEHRA administration can be an easy task with the right guidance from an HRA administrator. Employers and employees appreciate the ease that an HRA administration platform offers. For example, Take Command works in accordance with legal, privacy, and tax regulations so you don’t have to worry about it. And we’re always available to you and your employees for any questions that arise. 

What’s an HRA? HRAs for dummies

So far we’ve covered the basics about QSEHRAs, but let's look more at health reimbursement arrangements (HRAs) in general. Here’s a quick HRA for Dummies overview. 


HRA– health reimbursement arrangement– is the broad term explaining the reimbursement of employees by the employer for health insurance benefits 

QSEHRAs or qualified small employer health reimbursement arrangements are the specific type of HRA that can be offered to small businesses with 50 people or less 

QSEHRAs are affordable, tax-free, and easy to offer for small business employees 


If you’ve heard of an ICHRA (Individual Coverage Health Reimbursement Arrangements), they’re just another version of an HRA.

  • ICHRAs are offered to companies of any size or scale, whereas QSEHRA administration is just for businesses of 50 employees or less 
  • ICHRAs can be combined with group plans where QSEHRAs cannot 
  • There are no annual contribution limits or employee maximums for coverage with an ICHRA

For an employee to get reimbursement from QSEHRAs, they must be covered by an individual insurance plan. And these plans must provide QSEHRA Minimum Essential Coverage (MEC) as defined by the IRS. MEC plans include major medical plans, Medicare and Medicaid. Make sure that you’re in compliance with QSEHRA limits for 2023 when setting up your QSERHA.   QSEHRA administrators are available to make this a simple task for you. 

How to set up a QSEHRA 

So if you’re looking to offer a QSEHRA for 2023, you’ve come to the right place! QSEHRAs can be simple to set up and you’ll be on your way to offering competitive benefits to your small business employees. 


The steps for how to set up a QSEHRA are: 

  1. Design the reimbursement plan you want to offer 
  2. Create the required legal plan documents using a QSEHRA plan document template 
  3. Review compliance with QSEHRA requirements 
  4. Set a start date for your QSEHRA and cancel any current group health insurance policies- if applicable 
  5. Provide required notices to your employees 
  6. Provide resources for your employees to buy their own health insurance plans 

Once you’re up and running with a QSEHRA, you’ll need to make sure you stay compliant with your QSEHRA administration. This is where an efficient HRA administrator comes into play. 

By outsourcing the administration process of providing a QSEHRA to your employees, you’ll save yourself so much time and hassle. Most of our clients report spending less than 1 hour PER month administrating their health insurance because they offload so much of it to us as an HRA administrator. 

Next, we’ll provide you with the details and benefits of using third-party administrators for your QSEHRA. 

How to set up a QSEHRA plan 

Setting up a QSEHRA is easy with the right QSEHRA administrator. When searching for the best QSEHRA administrator, here are some important things to keep in mind: 

  • How much time it will save you
  • Price per employee 
  • Compliance with legal and privacy requirements
  • Ease of use for employers and employees 

QSEHRA third-party administrators save you time with health insurance administration because they do the work for you. An HRA administrator is essential to use to administer an HRA for your business. And at Take Command, we have administrators readily available for both QSEHRAs and ICHRAs. 

Take Command Health QSEHRA Administrators

  • Make sure you avoid penalties that may arise with the compliance regulations 
  • Have a quick and easy sign-up process for the employer 
  • Take care of the legal aspect of the health insurance administration
  • Handle tax documents concerning your HRA offering 
  • Support your employees throughout the process of setting up their HRA 

Getting started with a QSEHRA administration is simple, and we’ll guide you through the whole process. We offer a user-friendly platform for your HRA and work with your employees to make sure they have all their questions answered. And with our customized administrative portal, we’re with your business and employees at every step of the way. 


Again, the two most common HRA options for businesses are QSEHRAs and ICHRAs. We’ve already touched on their difference, but to summarize QSEHRAs vs. ICHRAs: 


  • Are for small businesses of 50 employees or less
  • Cannot be combined with a group plan
  • Have annual contribution limits
  • Must be the same size for all employees  

For more details about who is eligible for QSEHRAs, check out our complete QSEHRA guide


  • Are for businesses with any number of employees 
  • Can be combined with a group plan
  • Have no annual contributions or employee maximums 
  • Allow customizable reimbursements for different classes of employees. 

At Take Command, we offer HRA administration for both of these types of HRAs. As a small business owner, QSEHRAs are the right option for you. But as your business grows, you may consider switching to an ICHRA. So, we’re here to assist you through the growth of your business so you can continue offering competitive healthcare benefits for your employees.  

Take Command is ready to assist you with customized QSEHRA administration. Whether you're a business with a few employees or a growing small business, we’re here to make the health insurance administration process a breeze for you. Set up a call with one of our experts today to get started with your QSEHRA! 


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