“QSEHRA for Churches: Key Information You Need to Know”

Are you looking for an alternative to expensive group insurance policies that your church employees can afford? You might also find the answer you’re looking for in a Certified Small Employer Health Reimbursement Association. QSEHRAs have become more popular amongst churches as group insurance plans get more expensive. This association allows church buildings to provide flexible and affordable medical health insurance to church staff. It also provides a way for the church building to treat its dedicated team.

QSEHRA: How it works

QSEHRA allows church buildings to reimburse employees tax free for individual medical health insurance premiums. This is an enormous deal because church buildings now have the same tax treatment as large firm group health plans, but with much much less hassle.

The church can give its staff a fixed amount of money each month, such as $200. Each worker can then choose the plan which best suits their needs. Sally could choose a Blue Cross plan to cover her doctor, Roger could get Aetna’s prescription covered, and Betty would continue on her husbands group insurance plan. No more comparing quotes or trying to find the best deal for everyone. The staff are also happier.

With outlined contribution health benefits, church buildings can control the price of the health advantages and create predictability in the cost range. With outlined contribution health benefits, for example:

  • The church determines the amount of each contribution allowance.
  • Staff should not charge prices until they receive reimbursement
  • Pre-funding Accounts are not required
  • Unused funds remain with the Church

QSEHRA: Who is eligible?

The following standards must be met to be eligible for the Certified Small Employer HRA.

  • The church should not have more than 50 full-time staff.
  • Cannot be combined with a group well-being plan
  • The HRA allows employees to claim tax-free reimbursement for medical insurance premiums, out-of pocket medical expenses and other medical costs.
  • No minimum contribution is required to participate. The annual contribution cap (for 2022), is $5,450 for single workers and $11,050 if they have a family. HRAs should be funded by the firm and no worker contributions are allowed.
  • To be eligible for HRA reimbursements, staff participating in a Certified HRA Small Employer must have a minimum level of protection.
  • Employees who participate in Certified Small Employer HRA may be eligible for premium tax credit. If an employee is eligible for premium tax credit, The amount of the credit will be reduced by the monthly HRA amount.
  • The church will usually make the same HRA contribution for all employees who are eligible. However, amounts could be varied based on family status or employment status, such as clergy/pastor or full-time staff.

How to get started with QSEHRA in church buildings

All of this sounds sophisticated? Costly? It’s a good thing! Take Command can help you make this simple! Our QSEHRA Platform will handle all the accounting and legal legwork, onboard each of your employees, and make tax season simple and painless. No more will you have to worry about receipts, or establishing a health plan.


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