Why ICHRA instead of QSEHRA?

QSEHRA was an important milestone in the evolution of health reimbursement arrangements. Introduced in 2017, it allowed small employers to reimburse employees for individual health insurance on a tax-free basis.

But, QSEHRA was designed with several limitations. These include:

• Only available to employers with fewer than 50 employees
• Subject to annual contribution caps

• Less flexibility in benefit design

  
  

In 2020, ICHRA was introduced as a more flexible alternative. Essentially, it aims to make HRAs more accessible to employers! These changes were meaningful — ICHRAs are now the primary HRA market.

We built our platform on ICHRA because it gives employers more control and room to grow.

• No annual contribution limits
• Greater flexibility to structure benefits across different employee groups
• Better suited for employers looking to scale or customize their health benefits strategy

• The more common HRA today

  
  

In short: QSEHRA was the first generation of reimbursement-based health benefits. ICHRA is the more flexible, scalable version, which is why it's the solution our platform supports.