Straight To the Point: What Is In Store For the QSE HRA In 2018?

Introduced with the signing of the 21st Century Cures Act on December 13, 2016, the BASE® Qualified Small Employer Health Reimbursement Arrangement (QSE HRA) helps employers offer their employees a more attractive benefit package.  This new legislation instituted an arrangement allowing employers to help their employees pay for medical coverage for themselves and their families, tax-free.  The employees can use the money for insurance premiums, co-pays, deductibles, eye care, dental care, or any other qualified health care expense.  The amount provided is tax-free to the employees and 100% tax deductible to the employer.  With a QSE HRA, employees have the ability to secure their own medical insurance either on or off the Marketplace.

Additional regulations were recently introduced by the IRS with Notice 2017-67.  Few significant changes for the QSE HRA are in store; the Notice includes proposed regulations providing more defined guidelines with a request for feedback by January 19, 2018.  In the meantime, these new regulations took effect on November 20, 2017.  Failure to comply could result in a $100 per employee, per day penalty.

So what is in store for the QSE HRA in 2018?

Statutory Dollar Limits increased to $5,050 self-only/$10,250 family

  • Must provide proof of Minimum Essential Coverage (MEC)
  • Written Notices must be distributed 90 days prior to every plan year or on/before first day of eligibility while including eligibility date and limits
  • Offered on same terms to all employees

Some other requirements mentioned in Notice 2017-67 regarding the QSE HRA for 2018 are Substantiation Requirement, Coordination with Premium Tax Credits, Failure to Satisfy the Requirements to be a QSE HRA, Interaction with HSA Requirements, and Effective Date.

To learn more about the NEW QSE HRA Notice 2017-67, click the link to read the full notice, or call 1-888-386-9680 and let BASE® help you fully understand what is in store for the QSE HRA in 2018.

BASE® Office Closed for Thanksgiving

In this time of gratitude, we give thanks for customers like you.  Thank you for enabling us to do what we love everyday.  On behalf of all of us here at BASE®, we want to wish you a safe and Happy Thanksgiving to you and your family!

BASE® will be CLOSED Thursday, November 23, 2017-November 24, 2017 so that our employees may enjoy time with their families this Thanksgiving Holiday.  We will return to regular business hours on Monday, November 27, 2017 at 8AM.