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Download A Sample Employee Notice for QSEHRAs

Thursday, January 26, 2017

On Dec. 13, 2016, the 21st Century Cures Act (Act) was signed into law.

The Act allows small employers that do not maintain group health plans to establish stand-alone health reimbursement arrangements (HRAs), effective for plan years beginning on or after Jan. 1, 2017. This new type of HRA is called a “qualified small employer HRA.”

Due to the Affordable Care Act (ACA), most stand-alone HRAs have been prohibited since 2014. This new law creates a special exception for small employers that are not subject to the ACA’s employer shared responsibility rules. Instead of offering a group health plan, small businesses may use a qualified small employer HRA to reimburse employees’ out-of-pocket medical expenses, including their premiums for individual health insurance coverage, on a tax-free basis.


Action Steps

Small employers that sponsor QSEHRAs must provide a notice to all eligible employees. Federal tax law requires this notice to include specific information, including the maximum benefit available under the QSEHRA. Small employers may use this sample notice to address their QSEHRA notice obligation. It requires customization.

Download a Sample Employee Notice for QSEHRAs

© 2017 Zywave, Inc. All rights reserved.


Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.

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