If you received a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) letter from your employer, it means your employer is offering you money to help pay for health coverage you buy on your own, such as a Marketplace plan.
What to do next
Keep your QSEHRA letter handy.
It includes the monthly amount your employer will reimburse and other important details you’ll need when applying.Apply for Marketplace coverage.
When completing your Marketplace application on HealthSherpa, you’ll be asked if you received a QSEHRA. Enter the details from your letter, including the amount your employer will contribute each month.Review and adjust your premium tax credit (APTC) manually.
At the end of your application, you’ll have the option to review and adjust your APTC (Advance Premium Tax Credit). This allows you to see how your QSEHRA contribution affects your monthly premium and savings.
How it affects your Marketplace savings
If your QSEHRA is considered affordable, you may not qualify for Marketplace savings.
If it’s not affordable, you may still qualify for a reduced premium tax credit (APTC).
Generally, your QSEHRA is considered affordable if the amount you’d pay for the lowest-cost Silver plan (after your employer contribution) is no more than 8.39% of your household income.
The affordability percentage is set by the IRS each year. For plan year 2025, the threshold is 8.39% of household income as published in IRS Revenue Procedure 2024-30. The 2026 rate will be announced by the IRS before the start of Open Enrollment.
The Marketplace automatically determines this when you apply, using your household income and your employer’s QSEHRA amount.
Tip
Your QSEHRA amount is not paid directly to the insurance company. You’ll pay for your plan yourself each month and your employer reimburses you up to the amount listed in your letter.
Need help?
If you’re unsure how to enter your QSEHRA information or want help understanding your options, contact our Consumer Advocate team at 855-772-2663, Monday–Friday, 6am–4pm PT.