How Well Do You Understand the HRA Legislation? [Quiz]

Written by: Christina Merhar
Originally published on October 4, 2016. Last updated May 2, 2019.

The Small Business Healthcare Relief Act (SBHRA) is pending legislation that would create a new small business HRA, the qualified small employer health reimbursement arrangement (QSEHRA). 

How well do you understand the proposed legislation?

Take our quiz to find out!

Quiz - Are you a Small Business Healthcare Relief Act Pro?

How did you do on the quiz?

We hope you learned more about the pending legislation and how the QSEHRA would work.

To summarize:

  • If passed, the new QSEHRA would be available to qualified small employers starting January 1, 2017.

  • A QSEHRA is an employer-funded, tax advantaged health benefits plan used to reimburse employees for out-of-pocket health insurance premiums and medical costs. 

  • The HRA would be available to small employers (with fewer than 50 full-time employees) who do not offer a group health plan to any of its employees.

  • Employers could use the HRA to reimburse employees tax-free for health insurance premiums and other out-of-pocket medical expenses.

  • Employer annual contributions would be capped at $5,150 for a single employee and $10,450 for an employee with a family in 2019. HRAs are 100% employer-funded; employee contributions are not allowed.

  • Participants in the HRA are required to have "minimum essential coverage" to receive HRA reimbursements tax-free.

  • The HRA would not disqualify participants from the premium tax credits; however, the monthly HRA contributions will be included in an employee's income calculations for determining his or her tax credit eligibility and amount. Additionally, if an employee is eligible for a premium tax credit, the amount of the credit will be reduced dollar-for-dollar by the monthly HRA amount.

  • Generally, a company must make the same HRA contributions for all eligible employees. However, amounts may be varied based on family status.

What questions do you have?

For more information on the SBHRA or the QSEHRA, click here.

Or, leave a comment below.

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Topics: QSEHRA
Originally published on October 4, 2016. Last updated May 2, 2019.


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