The QSEHRA rules.
- Fewer than 50 full-time equivalent employees, and no group health plan offered to anyone.
- Offered on the same terms to all eligible employees. You may exclude employees under 25, part-time and seasonal workers, those with under 90 days of service, and some others.
- Amounts can differ only by the price of a plan for the employee's age and family size.
- Employees must have minimum essential coverage (an individual plan, or a spouse's group plan) for reimbursements to be tax-free.
- Written notice at least 90 days before the plan year.
- Paid only from employer funds; no salary reduction.
2026 limits.
| Coverage | Annual limit, 2026 | Monthly equivalent |
|---|---|---|
| Self-only | $6,450 | $537.50 |
| Family | $13,100 | $1,091.67 |
How a QSEHRA affects employee tax credits.
Employees must tell HealthCare.gov about the QSEHRA. If the QSEHRA is affordable (the lowest cost silver plan minus the QSEHRA allowance is no more than 10.22% of household income for 2027), they get no premium tax credit. If it is not affordable, their credit is reduced by the QSEHRA amount. Unlike an ICHRA, employees cannot opt out of a QSEHRA to keep a full credit.
Want a licensed advisor to run your numbers?
Get my free optionsQSEHRA or ICHRA?
A QSEHRA is simpler for very small teams on a modest budget. An ICHRA has no dollar limit, allows different amounts by employee class and works for any size business. See the side-by-side in ICHRA vs QSEHRA.
Questions people ask.
What is the QSEHRA limit for 2027?
Not published yet. The IRS usually releases it in the fall. For 2026 the limits are $6,450 self-only and $13,100 family.
Can I offer a QSEHRA and a group plan?
No. A business that offers any group health plan cannot offer a QSEHRA.
Sources.
- IRS Notice 2017-67, Qualified Small Employer Health Reimbursement Arrangements. irs.gov
- IRS Rev. Proc. 2025-32 (2026 QSEHRA limits). irs.gov
- HealthCare.gov, QSEHRA. healthcare.gov
- IRS Rev. Proc. 2026-26 (2027 required contribution percentage, 10.22%). irs.gov
General information for Texas and Oklahoma residents, not tax or legal advice. Rules and numbers can change; this page is reviewed on the date shown above. Your eligibility and prices are set by HealthCare.gov or the insurer when you apply.
Who wrote this.
RedHealth Advisors LLC is a licensed health insurance agency in Round Rock, Texas (Texas agency license 3449979, NPN 22110493), serving Texas and Oklahoma. Ryan Hutson is a licensed agent (NPN 21321807). Licensing details.