Leading Experts in QSEHRA and all New ICHRA


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HealthPass Employer Flyer 2019 (pdf)


Healthy Employees = Healthy Business

The right employee benefits can make all the difference

Depending on the company, these benefits may include health insurance (required to be offered by larger companies), dental insurance, vision care, life insurance, paid vacation leave, personal leave, sick leave, child care, fitness, a retirement plan, and other optional benefits offered to employees and their families.

Smart Solutions to Healthcare

Small businesses need solutions to the rising cost of healthcare. Smart Choices Healthcare is here to help!

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Introducing THE NEW QSEHRA


Benefits Employees Will Love

After salary, benefits are the top influencer for where people work. Yet, fewer and fewer small businesses are offering traditional group benefits (the old way) due to cost, complexity, or the one-size-doesn't-fit-all approach. 

Introducing the NEW QSEHRA.  A simpler and less costly way to offer employees relief to the rising cost of health care expenses.


Save on Costs and Have Happier Employees

Choice is key to having benefits that really add value. Health care costs continue to increase year over year. Employees struggle with affordability of their insurance premiums.  

More and more smaller employers are looking at the QSEHRA as a solution.  An QSEHRA can provide tax free dollars to employees for qualified expenses and provide a tax deduction for the employer. Giving employees the freedom to choose what plan is best for them.


Easy Administration

Smart Choices Healthcare (SCH) does all the work for you to ensure your employees have a great experience!  SCH now offers a new way to attract employees and to retain them without the pains of open enrollment, COBRA, participation requirements and high cost renewals. We ensure all the pieces are in place for a smooth offering and follow up directly with employees to answer any questions they may have on how their HRA works. 

ICHRA - Coming 2020 - the Expansion of the HRA

Potential HRA Changes coming in 2020

The fact is that, currently, many employers simply cannot afford to offer traditional, employer-sponsored coverage to their employees as a result of the significant costs, including the administrative burdens, associated with identifying and managing such health plans.

Some small businesses and their employees have been hit hard by rising costs, driven in part by Obamacare. For firms that employ 3-to-24 workers, the percentage of workers covered by employer health benefits has fallen from 44 percent in 2010 to 30 percent in 2018. For firms that employ 25-to-49 workers, the percentage of workers covered by employer health benefits has fallen from 59 percent in 2010 to 44 percent in 2018.

Could New HRA Proposed Regulations in 2020 Be The Answer to the High Cost of Health Plans?

According to preliminary estimates from the Treasury Department, once employers and employees have fully adjusted to the new rule, roughly 800,000 employers are expected to provide HRAs to pay for individual health insurance coverage to over 10 million employees. It is also possible that this proposed regulation would produce better incentives for both consumers and providers and thus will improve the overall healthcare system, as well as potentially increase workforce investment and wages. Moreover, the proposed regulation would better enable businesses to focus on what they do best - on serving their customers - and not on navigating and managing complex health benefit designs.

The proposed regulation can be found here, and a fact sheet can be found here


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Additional Information

     QSEHRA—A result of the bipartisan 21st Century Cures Act, available since 2017.

  • For small business with less than 50 employees
  • Reimburses premiums and qualified medical expenses  
  • Contribution limits: $5,150 for single employees, $10,450 for families for 2019. 
  • Employer can design reimbursements to vary based on age, family size, status
  • Participants must have MEC, otherwise they receive reimbursements as taxable income
  • All full time employees are eligible to participate
  • Cannot be offered with a group plan
  • Funds roll over year to year as long as total doesn't exceed maximum contributions.
  • For employees eligible for premium tax credits, QSEHRA reimbursements reduce the tax credit dollar for dollar. Unfortunately, employees can't opt-out. 

      ICHRA—A option for tax-free health reimbursement as a result of expected in January 2020. 

  • Available to businesses of any size
  • Reimburses premiums and qualified medical expenses 
  • No maximum contribution 
  • Participants must have MEC
  • Participation is at the discretion of the employer based on employee classes. HRA can be designed to reimburse at different rates for different classes. 
  • May be offered with a group plan, but employer can't offer employees in the same class a choice between HRA and group plan.
  • Funds roll over year to year.
  • Employees participating in the HRA aren't eligible for premium tax credits if the ICHRA is considered affordable, but if the amount the employee must pay for a self-only silver plan (the lowest cost silver plan on the exchange) is greater than 9.86% of their household income, the ICHRA is considered "not affordable" and the employee may opt out of the ICHRA and choose the premium tax credit instead. 

While QSEHRA and ICHRA are similar in many ways, they have differences as well. 

Other types of stand-alone HRAs that still linger around include:

  • Spousal HRA—For employees covered by a spouse’s group plan, a Spousal HRA could reimburse medical expenses but not premiums.

  • Retiree HRA—For former employees of a firm, an employer could use a Retiree HRA to help pay for retired members’ insurance premiums and medical expenses.

  • Medicare HRA—For employers with less than 19 employees, employers could elect to reimburse a portion of an employee’s Medicare supplement premiums.


Making the Healthy Choice, Easy, Everyday!