Tax-Free Health Allowances With an ICHRA or QSEHRA
You set the monthly budget, and each employee picks their own individual plan. We handle the ICHRA or QSEHRA design and setup.
- 2027 QSEHRA Limit, Self-Only
- $6,700
- 2027 QSEHRA Limit, Family
- $13,550
- 2027 Excepted-Benefit HRA Limit
- $2,250
What Is a Health Reimbursement Arrangement?
An HRA is an employer-funded plan that reimburses qualified medical expenses, health insurance premiums or both. When an HRA pays for insurance, the employee shops for, enrolls in and owns the policy, which must meet the ACA's minimum essential coverage rules.
- Individual Coverage HRA (ICHRA)
- Reimburses individual health insurance premiums and medical expenses. The most flexible design, with amounts you can tailor across your workforce.
- Qualified Small Employer HRA (QSEHRA)
- Tax-free reimbursement with simpler administration, made for small businesses.
- Integrated HRA
- Sits alongside a group health plan and reimburses out-of-pocket costs employees pay for care.
- Retiree HRA
- Reimburses costs that Medicare or other retiree plans don't cover.
ICHRA vs QSEHRA: How They Compare
| What to Compare | ICHRA | QSEHRA |
|---|---|---|
| Employer Size | Any size, including 50 or more employees | Fewer than 50 full-time and full-time-equivalent employees |
| 2027 Contribution Limit | No federal maximum. You choose the amount. | Capped each year by the IRS |
| Employee Classes | Yes. Amounts can vary by class, such as full-time, part-time, seasonal or location, and by age and family size within a class. | No. Same terms for every eligible employee, varying only by age or family size. |
| Offer Alongside a Group Plan | Yes, to a different class of employees, with minimum class sizes | No |
Is Your ICHRA Affordable in 2027?
Affordability decides whether an employee can still get a premium tax credit on top of your allowance.
For 2027, an ICHRA counts as affordable when the employee's cost for the lowest-cost silver plan in their area, after the allowance, is no more than 10.22% of household income. If it's affordable, the employee can't get a tax credit. If it isn't, the employee chooses the ICHRA or the tax credit, not both.
Bronze plans bought with an ICHRA are HSA-eligible.
Employees can pair the plan with a Health Savings Account and set aside pre-tax money for care. Compare HSA vs FSA.
What to Consider Before Offering an HRA
Unused Funds Stay With You
Unused money can roll over monthly or yearly, your choice. If an employee leaves, the funds stay with the business and the policy they bought goes with them.
Your Local Market Matters
An HRA is only as strong as the individual market around your employees. Weak markets mean fewer plans and higher premiums, so we check the plans in each employee's area first.
Formal Setup Protects You
Plan documents keep the allowance from counting as taxable income and protect you from employer payment plan penalties. An ICHRA is technically a self-funded plan, so IRS filings and PCORI fees apply, along with ACA and ERISA rules.
Group and Individual Know-How
Employees buy individual plans with an HRA, so the best results come from a broker who knows both group and individual coverage. That's the work we do.
How We Set Up Your ICHRA or QSEHRA
Choose the Right HRA
We weigh an ICHRA, a QSEHRA and a group plan against your size, budget and goals.
Design the Allowance
Amounts, employee classes and whether funds cover premiums, medical expenses or both.
Set Up the Plan
We put everything in place before the first reimbursement.
Help Each Employee Enroll
Every employee gets help choosing an individual plan that fits their doctors and budget.
Talk Through Your HRA Options
Thank You, We Have Your Request
Want a set time instead? Pick one on our calendar.
What Employers Say
Before Beyond Health: panic, dread, uncertainty about what was happening with my new business insurance needs. After Beyond Health: calm, cool, collected, in control and informed… I would have made a bunch of sub-optimal decisions without this team's help.
I've had a fantastic experience using Beyond Health Consulting as our health insurance guide, both for individual plans through the marketplace and also for getting our small business employer plans. Colleen really knows her stuff and she's generous with her knowledge… She's also just saved us so much money over the last 18 months from guiding us to good health insurance plans.
Beyond Health has been a great help, guiding me through the complex world of comparing and setting up different insurance plans and options. My agent, Colleen, especially provides easy to understand communication and clearly cares about my case.
ICHRA and QSEHRA Questions
Can Employees Use an ICHRA to Buy a Marketplace Plan?
Yes. Employees can buy an individual plan through the marketplace or directly from an insurance company, and the ICHRA reimburses them for it.
Does an ICHRA Satisfy the ACA Employer Mandate?
It can. For businesses with 50 or more full-time employees, an affordable ICHRA counts as an offer of coverage under the ACA employer mandate.
Do Employees Get a Special Enrollment Period With an ICHRA or QSEHRA?
Yes. A new ICHRA or QSEHRA lets employees buy individual coverage outside Open Enrollment. See how a special enrollment period works.
Can Employees Get a Tax Credit With a QSEHRA?
If the QSEHRA is affordable, no. If it isn't, the employee can keep the QSEHRA and a premium tax credit, with the tax credit reduced by the QSEHRA amount.
What Is an Excepted-Benefit HRA?
An HRA you offer alongside a group plan. It reimburses costs such as dental and vision care up to a yearly IRS limit, and employees don't have to join the group plan to use it.
Set Up an HRA Your Employees Will Use
We meet by phone or video, at a time that suits you.
Beyond Health employs licensed insurance producers authorized to sell life and health insurance in Utah, Idaho, Wyoming, Colorado, Montana and South Carolina. Our activities comply with state licensing requirements and partner carrier guidelines. Product availability and enrollment options may vary by state. Plan details, prices and deadlines on this page come from government and insurer sources and can change. Your agent confirms them before you enroll.