Hint: It's easier than you think.
Boost employee morale and retention rates by offering tax-free reimbursement for customizable health insurance plans - in the form of QSEHRA! Setting up can be done with a few simple steps, thanks to QSEHRA, a provision of the 21st Century Cures Act. Wondering where to start?
Pick a start date. The first step is pretty easy-establish a start date! If your company currently does not offer a group plan, you can start your plan ASAP. However, if you already have a plan in place you will need to cancel it before you begin your QSEHRA.
Set a cancellation date for your group policy. This step is only for business owners currently offering group health insurance. You will need to cancel the group plan coverage before the start date of the new QSEHRA. In order to avoid any gaps in coverage, ensure the group plan ends one day before the QSEHRA begins.
Confirm who will be eligible. You are required to offer the QSEHRA to all full-time employees. You have the option to offer the QSEHRA to part-time employees as well, but it is not required.
Determine a budget and set allowances. Your next step is to determine how much you’ll give employees to reimburse them for premium costs and medical expenses. You can set a monthly allowance or offer the 2022 maximum coverage for your employees $5,450/individual or $11,050/family. There is no minimum contribution amount to participate in a QSEHRA.
Establish legal plan documents. We will actually handle this step for you! You will just have to approve the documents we create. The IRS and Department of Labor have a variety of rules to follow regarding QSEHRAs. Failure to comply with the rules will result in penalties. Your legal plan documents must include the QSEHRA policies including monthly reimbursement amounts and reimbursement eligibility.
Communicate your new benefit to employees. Since you are going through the work to set up the QSEHRA employee benefit you want to make sure your employees know how to use it. Here's a guide we made to help you explain it! Practical information to include: start date, annual QSEHRA allowance, and how to obtain coverage. Our team at Take Command can help onboard your team for you.
Provide resources for employees to purchase individual health insurance. Choosing a health insurance plan is a daunting task. As an employer, you can provide your employees with tools and information to guide their decision making. Just beware, federal rules prohibit employers from being involved in the actual decision-making when it comes to choosing a provider or policy. Take Command Health can provide the best on- and off-market options or even faith-based plans for your employees based on their needs, their budget, their preferred doctors and their prescriptions.
Does this sound confusing, expensive or both? Don't worry. That's where Take Command Health's new small business platform can help. We'll handle all the accounting and legal legwork, take care of onboarding each of your employees and make tax time easy and painless. You'll never have to hassle with receipts or worry about setting up a health plan again.