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Employee Benefits coverage

ICHRA / QSEHRA

ICHRA and QSEHRA are health reimbursement arrangements that let you give employees tax-free money to buy their own coverage instead of sponsoring a traditional group plan (QSEHRA is designed for businesses under 50 employees; ICHRA works at any size). They offer predictable costs and flexibility, which is why more small and mid-sized employers are adopting them as an alternative.

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Who this coverage is for

This is for employers who want to help with employee health costs without managing a traditional group plan, often small businesses or companies with a spread-out or remote team. It suits owners who prefer to set a budget and let employees choose their own individual coverage.

What it can help protect

ICHRA and QSEHRA are health reimbursement arrangements that let you give employees tax-free money to buy their own health insurance and pay medical costs. Here is what they commonly support:

  • Budget control — you decide how much to contribute, so your costs are predictable instead of tied to a group plan's renewals.
  • ICHRA — an Individual Coverage Health Reimbursement Arrangement, available to businesses of any size, lets you reimburse employees for individual health plans they choose.
  • QSEHRA — a Qualified Small Employer Health Reimbursement Arrangement, designed for businesses with fewer than 50 employees and no group plan, with annual contribution limits set by the IRS.
  • Employee choice — staff pick the individual plan that fits them best rather than a one-size-fits-all group plan.
  • Tax efficiency — reimbursements are generally tax-free to employees and deductible for the business when the rules are followed.
Regularly misunderstood coverages
ICHRA vs. QSEHRA vs. Group Health

Reimbursement models vs. a traditional group plan.

Key choices and underwriting factors

A licensed review will usually focus on employer size and workforce makeup, budget goals and administrative preference, and current benefits and recruiting context.

Common Questions