Updated April 2026 · Florida Plan Finder · Licensed Florida Health Insurance Producer

QSEHRA for Florida Small Business

A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) allows Florida businesses with fewer than 50 full-time equivalent employees to reimburse workers tax-free for individual health insurance premiums and qualifying medical expenses — without sponsoring a group health plan. QSEHRAs are simpler than ICHRAs, have IRS-set contribution limits, and allow employees to maintain their own ACA marketplace plans while receiving some employer contribution toward the cost.

2026 QSEHRA Contribution Limits

QSEHRA Key Rules

• Employer must have fewer than 50 FTEs — businesses with 50+ employees cannot use a QSEHRA
• Cannot offer a group health plan — if you offer any group health plan to any employee, you cannot also offer a QSEHRA to that same class of employees
• Must be offered to all full-time employees — cannot exclude full-time W-2 employees (with limited exceptions for new hires, seasonal workers, and employees under age 25)
• Employee must have qualifying individual coverage — employees must be enrolled in a qualifying health plan (ACA marketplace, spouse's employer plan, or other qualifying coverage) to receive reimbursements
• Contributions must be equal (or age-adjusted) — you can offer the same dollar amount to all employees or adjust by age (up to 3:1 ratio for older vs. younger employees) but not by health status
• 90-day advance notice required before the QSEHRA plan year starts

QSEHRA and ACA Premium Tax Credits

Employees who receive QSEHRA reimbursements and also purchase marketplace coverage must reduce their ACA premium tax credit by the QSEHRA amount. The employee reports the QSEHRA benefit to the marketplace when applying for coverage. This means lower-income employees who rely on marketplace subsidies may receive less overall benefit from a QSEHRA than higher-income employees who receive no ACA subsidy.