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QSE-HRA: Small Employer HRA Plan Documents Just $199

The former stand-alone HRA is now known as the QSE-HRA for qualified small employer groups with fewer than 50 employees offering no group health plan. Plan documents to establish a QSE-HRA for your business are available for just $199 from Core Documents, Inc.

A Group Health Insurance Alternative for Companies with Fewer than 50 Employees

$299  Discounted to $199 one-time fee – in PDF via email*

$349  Discounted to $249 one-time fee – in PDF email* + Deluxe Binder via USPS

Qualified Small Employers (QSEs with fewer than 50 full-time employees) who do not offer a group health plan can now offer a Health Reimbursement Arrangement (HRA) that uses tax-free dollars to reimburse employees who purchase individual (non-group) health insurance on the individual market or the ACA exchange, along with eligible out-of-pocket medical, dental, and vision  benefits.

  • No group health insurance premium makes the QSE-HRA an affordable alternative for the small employer.
  • For 2018, the maximum allowed annual benefit is $5,050 per employee electing individual coverage, and $10,250 per employee electing family coverage.
  • To qualify for the QSE-HRA employers cannot offer another group health plan, including any other Health Reimbursement Arrangements (HRA), or any Health Care Flexible Spending Accounts (FSA), Limited Health Care Flexible Spending Accounts (FSA), and plans that only provided excepted benefits like dental, vision, etc.  See:  IRS Notice 2017-67
  • The IRS and DOL only require employers to adopt a formal plan document and SPD to define the benefit design in writing. Then you start saving money.

QSE-HRA Plan Document Package

Special Limited-Time Offer at $199

 


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No annual subscription fee required: Core Documents will notify you when there are sufficient changes in the Code to require amending and restating your Plan.  You can amend and update anytime for just $199, and only when necessary which is the most cost effective way to establish and maintain a HRA Plan.


Video:  Executive Summary of the Qualified Small Employer QSE-HRA Plan

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PDF Brochure – QSE-HRA Qualified Small Employer HRA Plan Documents & Forms

Core QSE-HRA Qualified Small Employer Plan Document and Forms

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The Stand-Alone HRA and the ACA

At one time, stand-alone HRA’s were a common feature in small business employee benefit packages. It allowed the small employer to provide financial assistance to help cover insurance premiums, deductibles, co-pays, and other qualifying health, dental, and vision expenses an employee encountered during a Plan year.

The stand-alone option was not the only kind of HRA available to employers, but it filled a niche for smaller business owners. The HRA could be set up to cover expenses like deductibles and co-pays in conjunction with a high-deductible health insurance plan provided by the company. This HDHP or Gap plan is still available, but it is and has always been somewhat out of reach for small employers because of the requirement to purchase a group health plan before it was viable.

That is why the stand-alone HRA option was a much better fit and an extremely popular plan with these business owners for many years. Then, the Affordable Care Act (ACA) came along, and in 2013 the stand-alone HRA was declared ineligible under the new law. Steep fines of $100 per day per employee were levied, up to half a million dollars per year for a business continuing to offer the plan.

Employers had to abandon stand-alone HRA’s immediately. The options remaining included the Gap plan or nothing at all, and a lot of smaller businesses were forced to go with the latter.

LATEST NEWS: IRS Notice 2017-67 issues guidance on QSE-HRA Notice to Employees

The Stand-Alone HRA Returns as the Qualified Small Employer HRA

Qualified Small Employer HRA Plan Document Package just $199

In June 2016, Congress revived the stand-alone HRA by passing the Small Employer Healthcare Relief Act (H. R. 5447). The Senate added the provisions of the bill to the 21st Century Cures Act, which was passed in that chamber on December 7, 2016, and signed into law by the President on December 14, 2016.

The former stand-alone HRA is now known as the Qualified Small Employer Health Reimbursement Arrangement, or QSE-HRA. Plan documents to establish a QSE-HRA for your business are available for just $199 from Core Documents, Inc.

To qualify, an employer must have fewer than 50 full-time employees on any day of the previous calendar year and cannot provide a group health plan for any active employees. The employee count includes calcuations for part-time and temporary or seasonal staff. If you meet these provisions, you will be interested in the others:

  • Only an employer can contribute to the QSE-HRA; employee contributions are not allowed.
  • The annual amount that can be contributed by an employer to the Plan is $4,950 per employee electing individual coverage and $10,000 per employee electing family coverage.
  • The QSE-HRA must be offered to all employees on an equal basis with exceptions for family vs. individual coverage (per above), employees with less than 90 days’ employment, part-time or seasonal workers, employees under 25 years of age, and a few other factors having to do with union contracts and citizenship.
  • QSE-HRA funds may be used by employees to pay qualifying medical expenses including health insurance premiums.
  • Health insurance premiums for insurance purchased on the ACA Marketplace now qualifies for reimbursement under the QSE-HRA, but any amount received through an employer-sponsored QSE-HRA must be offset against any payment credit received in the Marketplace (pro-rated monthly).
  • The employer must verify that the employee has qualifying health insurance (requiring proof of coverage) before issuing any reimbursements from the QSE-HRA.
  • Written notice must be provided to qualifying employees 90 days prior to the start of each Plan year indicating the amount of the benefit available under the Plan, stating that the employee must inform the ACA Marketplace of the Plan amount when purchasing health insurance there, and advising that failure to maintain qualifying health insurance coverage throughout the Plan year will result in the standard ACA penalty plus cause all reimbursements from the Plan to be taxable income (for this reason, the benefit amount must be reported on employees’ W-2’s).
  • The QSE-HRA is not eligible for COBRA continuation of benefits.

Related: Small Employer HRA Update & FAQs (QSE HRA)

Get Your QSE-HRA Plan Documents Today! (Click to order)

*Most documents go out the same day via email within hours M-F. Orders placed on the weekend will be emailed Monday morning. Keep in mind that December, January, and February are our busiest months of the year and documents are processed in the order they are received. The Rush Order fee ($25) simply brings your document to the top of the stack to be processed immediately.

Read the full text of IRS Notices on QSE-HRA plans and Presidential EO 13813:

Qualified Small Employer Health Reimbursement Arrangements (Notice 2017-67)

Presidential Executive Order Promoting Healthcare Choice and Competition Across the United States (EO 13813, referenced in Notice 2017-67)

EXTENSION OF PERIOD FOR FURNISHING WRITTEN QSEHRA NOTICE TO ELIGIBLE EMPLOYEES (answered in Notice 2017-67)