Your QSEHRA runs on a calendar year, which means that each Fall is the time to think about your needs for the following year and renew your program. Each calendar year offers you an opportunity to reset and update your program design for your employees - or keep it exactly the same!
When do I need to make any design updates and renew my HRA?
All existing HRA administrators should make design changes/updates and renew their HRA program for 2025 by September 12th, 2024 choosing to either keep the same existing design or make changes for next year’s program. If we don’t hear from an admin, the HRA will auto-renew with no changes on September 12th.
We know, that sounds early.
But here's the deal: QSEHRA guidance says that you have to provide your employees with a 90-day notice before each new program year. That means that 90 days before January 1st 2025, they should be notified of their benefits for next year. We will generate your 2025 Employee Notice for you and provide it to your employees via their Take Command employee portals.
90 days from January 1st is October 3rd, and we will need a few days to generate documents for your employees in time, so September 12th, is the ideal final day for you to make changes and renew. Don't worry, if you need to make some changes in October, we can still help you.
So, why does the guidance require a 90-day notice?
Open Enrollment begins November 1st, so giving your employees a little bit of notice helps them prepare to shop for their individual plans for next year.
What are the 2024 QSEHRA limits?
The contribution maximums for QSEHRA programs in 2025 is $6,350 ($529.16/ month) for single employees and $12,800 ($1066.66 / month) for families. An increase from the 2024 limits which are $6,150 ($512.50/month) for single employees and $12,450 ($1,037.50/month) for families.
What do I need to think about when planning for my 2025 QSEHRA?
If your program is working for you this year, then you can keep it all exactly the same! But, if you've had some big changes to your staff, your budget, or your needs for the upcoming year, you may want to switch it up!
Here are some things to think about:
Do you want to change your QSEHRA allowances? Remember you can offer everyone the same amount, vary allowances by family status, or offer everyone the maximum.
Do you want to start or stop reimbursement for medical expenses, in addition to monthly premiums?
Do you want to add or remove an eligibility wait period for new hires, which determines how long they must be employed before receiving the benefit?
Do you want to start or stop offering taxable reimbursements to employees who pay their premiums through a spouse's or another employer's group plan?
Wondering about other HRA options?
You've probably heard us talk about another type of HRA, called ICHRA. If your QSEHRA is working for you, we usually recommend sticking with it, but we can help you think through whether ICHRA could be a better fit. Check out more information on that here.
Let us know if you need help deciding what's best!
So, how do I tell you what I want?
Starting August 15th, you'll be able to complete your renewal and check a few boxes through your Administrator Member Portal to make your 2025 selections.
Help! I need to talk some things out.
That's what we're here for! Use the chat function in the bottom right corner of your screen to talk with our Client Success team, and we'd be happy to help you think through what's best for you and your team.
Still not sure where to start? Check out our Admin Resource Center for more resources and support.