| Small employers who dont offer group health coverage to their employees can help employees pay for medical expenses through aQualified Small Employer Health Reimbursement Arrangement (QSEHRA). A QSEHRA allows small employers to provide non-taxed reimbursement of certain medical care expenses, like health insurance premiums and coinsurance, to employees who maintain minimum essential coverage (MEC), like a plan from the Individual Marketplace. To get non-taxed reimbursements from a QSEHRA, an employee (and any covered spouse and dependents) must be enrolled in MEC. To provide a QSEHRA to its employees, a small employer generally must: Have fewer than 50 full-time employees. Provide the arrangement on the same terms to all eligible employees (reimbursement amounts may only vary based on age and the number of individuals covered). Not offer a group health plan, such as Small Business Health Options Program (SHOP) coverage or a flexible spending account. For more information on QSEHRAs, see these resources: Article: Qualified Small Employer HRAs (QSEHRA) Article: Health Reimbursement Arrangements (HRAs) for small employers Notice: Internal Revenue Bulletin: 2017-67 | 