# QSEHRA

> The qualified small employer HRA: who may offer it, the 2026 limits, the 90-day notice and the proof-of-coverage rule.

Source: https://lopifi.com/learn/qsehra-vs-ichra/qsehra-explained
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is a QSEHRA and who can offer one?** The qualified small employer HRA: who may offer it, the 2026 limits, the 90-day notice and the proof-of-coverage rule.

A [QSEHRA](https://lopifi.com/md/glossary/qualified-small-employer-hra) is for an eligible employer: one that is not an [applicable large employer](https://lopifi.com/md/glossary/applicable-large-employer) and does not offer a group health plan. It is funded by the employer alone, reimburses medical care once the employee has shown proof of coverage, and is offered on the same terms to every eligible employee — varying only with the price of individual coverage by age and family size.

> “The term “ eligible employer ” means an employer that— (i) is not an applicable large employer as defined in section 4980H(c)(2), and (ii) does not offer a group health plan”

— [IRC §9831(d)](https://www.law.cornell.edu/uscode/text/26/9831), Qualified small employer health reimbursement arrangements

| Coverage | For the year |
| --- | --- |
| Self-only | 6,450 |
| Family | 13,100 |

The 2026 QSEHRA maximums, from Rev. Proc. 2025-32.

> “For taxable years beginning in 2026, the dollar limitation under § 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,400.”

— [Rev. Proc. 2025-32, §4.15, §4.63](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf) (PDF), 2026 inflation adjustments: the health FSA limit and the QSEHRA maximums

1. **Check eligibility.** No group health plan — HealthCare.gov counts a health FSA as one — and fewer than 50 full-time employees.
2. **Set the allowance.** The same terms for every eligible employee, within the year's maximum.
3. **Give the written notice.** To current employees 90 days before each plan year; to a new employee when they become eligible.
4. **Reimburse against proof.** Reimburse only after proof of minimum essential coverage, so reimbursements stay tax-free.

Running a QSEHRA.

— [HealthCare.gov — HRAs for small employers (QSEHRA)](https://www.healthcare.gov/small-businesses/learn-more/qsehra/), QSEHRA: who can offer one, the 2026 limits and the 90-day notice

## Where this page's rules come from

- [IRC §9831(d)](https://www.law.cornell.edu/uscode/text/26/9831) — Qualified small employer health reimbursement arrangements (statute)
- [Rev. Proc. 2025-32, §4.15, §4.63](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf) (PDF) — 2026 inflation adjustments: the health FSA limit and the QSEHRA maximums (irs)
- [HealthCare.gov — HRAs for small employers (QSEHRA)](https://www.healthcare.gov/small-businesses/learn-more/qsehra/) — QSEHRA: who can offer one, the 2026 limits and the 90-day notice (agency)

- **Track:** [Health & benefits](https://lopifi.com/md/learn/benefits)
- **Part of:** [HRAs: QSEHRA and ICHRA](https://lopifi.com/md/learn/qsehra-vs-ichra) — 6 min
- **Terms taught:** [Qualified small employer HRA](https://lopifi.com/md/glossary/qualified-small-employer-hra), [Minimum essential coverage](https://lopifi.com/md/glossary/minimum-essential-coverage)
- **Previous:** [HRAs: QSEHRA and ICHRA](https://lopifi.com/md/learn/qsehra-vs-ichra)
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