PCORI

Qualified Small Employer HRAs

Effective Jan. 1, 2017, an eligible employer may offer a stand-alone HRA without incurring penalties under the ACA if the HRA meets the requirements for a QSEHRA. This type of HRA can be used to help employees pay for their own health insurance policies and reimburse other out-of-pocket medical expenses.

  • QSEHRAs are a type of stand-alone HRA that can reimburse employees for their individual health insurance premiums without violating the ACA.
  • Only small employers that are not subject to the ACA’s employer shared responsibility rules can adopt QSEHRAs.
  • A sample QSEHRA notice is provided on the last page of this attached document.

Qualified Small Employer HRA