What is the primary focus of QSEHRAs?

The primary focus of Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) is defined contribution health benefits. This structure allows small employers to provide employees with a set amount of money to use for purchasing individual health insurance plans or for reimbursing their qualified medical expenses. The benefits are designed as a flexible way for small businesses to assist employees with their health care costs without providing a traditional health insurance plan.

Through this arrangement, employers can control their health care expenditures while still allowing employees the freedom to choose their health insurance coverage that best fits their needs. QSEHRAs empower employees by giving them greater control over their healthcare options, which aligns with the defined contribution model where the employer contributes a specific amount rather than providing a specific health insurance plan.

This focus distinguishes QSEHRAs from other options like income tax reduction, retirement savings, or employee insurance portability, which do not directly address the provision of health benefits in the same way.