A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) allows small businesses with fewer than 50 full-time employees to reimburse employees for individual health insurance premiums and qualified medical expenses tax-free. In 2026, the QSEHRA annual limit is $6,350 for individual coverage and $12,800 for family coverage.
Key Points
- QSEHRA: small businesses reimburse employees for individual health insurance premiums
- Available to businesses with fewer than 50 full-time employees
- 2026 annual limit: $6,350 individual, $12,800 family
- Reimbursements are tax-free for employees
- An independent agent can help you set up a QSEHRA