In today’s world, 74% of employees agree that having health insurance benefits provides peace of mind for the unexpected and increases loyalty to their company. They also prefer customized benefit options based on their personal needs. Sounds like there are a lot of good reasons to opt for a QSEHRA (defined contribution model) over a traditional one-size-fits all group benefit plan. But how do you explain this new concept to your employees? Communicate early, often and in writing. Here are a few tips.
What is included in the required written notice to employees?
The provisions of the 21st Century Cures Act and the rules and requirements surrounding small business HRAs (QSEHRAs) can be hard to understand. That’s why lawmakers included very specific requirements on how small business owners communicate to their employees. Just remember, it must be in writing, and we will provide a written notice to your employees for you, too.
Here’s what you are required to communicate:
How much contribution an employee is eligible for in that given year
How employees need to communicate their contribution amount to any health insurance exchange to which they apply for advance payment of the premium assistance tax credit.
Help them understand that if the employee is not covered under minimum essential coverage for any month, the employee may be subject to tax for that month and reimbursements under the arrangement may be includible in gross income.
What else do my employees need to know?
Here are a few other things we suggest you stress to your employees:
Minimum Essential Coverage: In order to qualify for reimbursements through QSEHRA, your employees must have health insurance that qualifies as Minimum Essential Coverage.
Finding Insurance Coverage: If your employees need to purchase insurance, we can either help them find a plan or direct them where to go to do so. They can reach out to our support team for guidance.
Tax Credits: If they are receiving a tax subsidy from the government towards their insurance premium, it may be affected now they they are offered a QSEHRA. They can reach out to us for help on what to do next.
Claiming Reimbursement: To get reimbursed, they'll have to provide proof of their insurance coverage for compliance, and then claim reimbursement through our platform. They can set up their premium as a recurring claim 1 time for the year!
Reimbursement Process: The reimbursement will come from YOU, not from Take Command Health.
For more specific questions about your plan, you can direct them to the plan documents in their member portal. The plan documents outline what is eligible for reimbursement according to your plan and how the QSEHRA works. For even more specific questions about their individual plans or medical expenses, please direct them to our support team for personalized help!
Still not sure where to start? Check out our Admin Resource Center for more resources and support.