You can waive your QSEHRA even if you don't have Minimum Essential Coverage (MEC), but you won't be eligible for tax-free HRA reimbursements unless you have qualifying health insurance.
Can I waive my HRA if I don't have qualifying health insurance?
Yes. You may choose to waive your employer's QSEHRA if:
You don't have Minimum Essential Coverage (MEC).
You don't plan to purchase health insurance.
You don't want to participate in the HRA.
What is Minimum Essential Coverage?
Minimum Essential Coverage (MEC) is health insurance that meets federal coverage requirements.
To receive tax-free QSEHRA reimbursements, you generally must have qualifying health insurance that provides MEC.
What happens if I waive my HRA?
If you waive your HRA:
You won't receive QSEHRA reimbursements.
Your employer won't reimburse eligible health insurance premiums or medical expenses through the HRA.
You may choose to participate later only if you're eligible under your employer's plan rules.
When does this article not apply?
This article explains the relationship between MEC and waiving your HRA.
It does not explain how to enroll in health insurance or request reimbursement.
Key takeaway
Employees without qualifying health insurance may choose to waive their QSEHRA. Without Minimum Essential Coverage, you're generally not eligible to receive tax-free HRA reimbursements.