Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) allows an eligible small employer to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A QSEHRA is a tax-advantaged arrangement that lets small employers reimburse employees, tax-free, for the cost of individual health insurance premiums and other qualified medical expenses. It is available to employers that do not offer a group health plan. Such individual-market solutions are an alternative to traditional group coverage for small businesses, and the A&H objectives cover QSEHRA and ICHRA among small-group delivery options.
Why the other options are wrong
- B) A QSEHRA reimburses individual-market premiums; it does not force employees into a particular employer-selected HMO.
- C) Reimbursement under a QSEHRA is not funded by deducting employee wages; the employer funds the arrangement.
- D) QSEHRAs reimburse individual coverage; they are not a mechanism to offer self-funded plans outside state regulation.
Memory hook
QSEHRA = small employer writes a tax-free reimbursement check for your own policy. No group plan required.