Employees with a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) can use this money for which of the following?

Employees with a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) can use the provided funds specifically for medical expenses. QSEHRAs are designed to help small employers offer their employees a method of reimbursing healthcare costs. These reimbursements can cover a variety of qualified medical expenses, including but not limited to deductibles, copayments, prescription medications, and other eligible health-related costs.

The tax advantages of a QSEHRA contribute to its effectiveness in helping employees manage healthcare expenses without being taxed on the reimbursements as long as the expenses are qualified. This structure encourages employees to seek out necessary medical care without the burden of high out-of-pocket costs, which can significantly improve their overall financial well-being related to health care.