Both QSEHRA and ICHRA allow Florida employers to reimburse employees tax-free for individual health insurance premiums — without sponsoring a group plan. The right choice depends primarily on your business size, how much flexibility you want in varying contributions by employee class, and how your employees' ACA subsidy eligibility factors in. Here is a complete side-by-side comparison.
| Feature | QSEHRA | ICHRA |
|---|---|---|
| Employer size limit | Under 50 FTEs only | Any employer size |
| Annual contribution limits (2026) | $6,350/individual; $12,800/family | No cap — employer sets any amount |
| Can vary contributions by class? | No — must offer same amount to all full-time employees (age adjustments allowed up to 3:1) | Yes — can vary by 11 defined employee classes |
| Can offer alongside a group plan? | No — cannot offer group plan to any employee in the QSEHRA class | Yes — to different employee classes |
| Employee ACA subsidy impact | Subsidy reduced dollar-for-dollar by QSEHRA amount; employees can still claim remaining credit | Affordable ICHRA eliminates ACA subsidy; employee can opt out to preserve subsidy |
| Employee opt-out option | No — employees cannot opt out and retain full subsidy | Yes — employees can opt out if ICHRA is unaffordable and retain ACA subsidy |
| Employee must have qualifying coverage? | Yes — must be enrolled in qualifying health plan | Yes — must be enrolled in individual market coverage (not short-term or grandfathered plans) |
| Plan notice requirement | 90 days before plan year | 90 days before plan year |
| Administration complexity | Low to moderate | Moderate (more class-management flexibility = more setup complexity) |
Setting up an HRA for your business
Talk to a licensed Florida broker — we can compare QSEHRA, ICHRA, and group plan options for your situation.
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