A QSEHRA is only for employers with fewer than 50 FTEs and no group plan, has statutory dollar caps, and is not an ERISA plan (no COBRA). An ICHRA is for employers of any size, has no dollar cap, allows up to 11 employee classes, can run alongside a group plan for other classes, and IS an ERISA group health plan.
QSEHRAs
A Qualified Small Employer HRA (QSEHRA) lets small employers without a group plan reimburse employees for individual coverage. These FAQs explain QSEHRA rules and limits.
How does an ICHRA or QSEHRA affect an employee’s premium tax credit?
If the HRA offer is “affordable,” it blocks the premium tax credit: the employee takes the HRA instead. If it’s unaffordable, the employee may opt out and keep the PTC. A QSEHRA also reduces the PTC dollar-for-dollar, while an ICHRA is all-or-nothing.