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A health reimbursement arrangement (HRA) is an IRS-approved health benefit used to reimburse employees for medical expenses and health insurance premiums. A QSEHRA is a simple, controlled-cost alternative to group health insurance for small businesses.

A qualified small employer HRA (QSEHRA), also known as the small business HRA, is a formal, IRS-approved health benefit. It allows small businesses with fewer than 50 full-time equivalent employees to offer a tax-free reimbursement to their employees for their health insurance premium and other qualifying health expenses.


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