QSEHRA & ICHRA Employer Plans in Chaska, MN

What Are QSEHRA and ICHRA Plans?

QSEHRA and ICHRA are health reimbursement arrangements (HRAs) that let employers reimburse employees tax-free for individual health insurance premiums and qualified medical expenses. Unlike group plans, these arrangements give your team the freedom to choose their own coverage—often through MNsure, Minnesota’s health insurance marketplace—while you control costs with a set budget.

QSEHRA: Designed for small businesses with fewer than 50 full-time employees who don’t offer group health insurance. In 2025, you can reimburse up to $6,350 for single coverage or $12,800 for family coverage (adjusted annually by the IRS).
ICHRA: Available to employers of any size, with no reimbursement caps. You decide the contribution amount, making it ideal for larger or growing businesses in Chaska and beyond.

Both plans are tax-advantaged: your contributions are deductible, and reimbursements are tax-free for employees. Plus, they’re compliant with the Affordable Care Act (ACA) when structured right—a win-win for Minnesota employers.

Why Choose QSEHRA or ICHRA in Minnesota?

Minnesota’s unique healthcare landscape, including MNsure and strong individual market options like Blue Cross Blue Shield and HealthPartners, makes QSEHRA and ICHRA especially appealing. Here’s why Chaska businesses love them:

Cost Control: Set a fixed allowance—no surprises from rising group premiums.
Flexibility: Employees pick plans that suit their needs, from MNsure’s Silver tier to high-deductible options.
Tax Savings: Reduce payroll taxes for your business and income taxes for your team.
ACA Compliance: ICHRA helps larger employers meet the employer mandate; QSEHRA fits smaller firms perfectly.

For employees, it’s a chance to use reimbursement funds for premiums or out-of-pocket costs (like copays at Ridgeview Medical Center) while keeping coverage portable if they switch jobs.

QSEHRA vs. ICHRA: Which Fits Your Chaska Business?

Not sure which plan suits you? Here’s a quick breakdown:

QSEHRA:
- Best for: Small businesses (<50 full-time employees) in Chaska with no group plan.
- Limits: Caps at $6,350/$12,800 in 2025.
- Rules: Can’t offer alongside group coverage or FSAs; employees can pair it with MNsure tax credits if the allowance isn’t “affordable” (we’ll explain that below).
ICHRA:
- Best for: Any size employer, including those with mixed needs (e.g., group plans for some, ICHRA for others).
- Limits: None—you set the amount.
- Rules: Employees must have individual coverage (e.g., MNsure plans or Medicare); no tax credits if ICHRA makes coverage “affordable.”

“Affordable” means the lowest-cost Silver plan on MNsure, minus your contribution, costs less than 8.39% of an employee’s household income (2025 threshold). If it’s unaffordable, employees can opt out of ICHRA and claim MNsure subsidies instead. We’ll help you crunch the numbers.

How Options Insurance Makes It Easy

At Options Insurance in Chaska, MN, we’re your local experts in QSEHRA and ICHRA setup and administration. Serving Carver County and beyond, we offer:

Tailored Plans: We design your HRA based on your budget and workforce—whether you’re a downtown Chaska startup or a growing manufacturer.
MNsure Guidance: We help employees navigate MNsure enrollment and understand tax credit impacts.
Compliance Support: From IRS rules to annual notices, we keep you on track.
Free Consultations: No cost to explore your options with us.

Our team knows Minnesota’s quirks—like how QSEHRA allowances offset MNsure tax credits—and we’ll ensure your plan works seamlessly for your business and employees.

Get Started Today

Ready to offer QSEHRA or ICHRA to your Chaska team? Options Insurance is here to help. Call us at (952) 392-9508 or fill out our online form for a free, no-pressure quote. Whether you’re near Lake Minnewashta or running a shop on Chestnut Street, we’ll craft a health benefits solution that fits your business like a glove. Let’s make healthcare simple, affordable, and Minnesotan-smart!