Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Both a qualified small employer health reimbursement arrangement (QSEHRA) and an individual coverage health reimbursement arrangement (ICHRA) are:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
QSEHRAs and ICHRAs are employer-funded reimbursement arrangements. A QSEHRA is available to employers with fewer than 50 employees and reimburses qualified medical expenses, including premiums for individual coverage. An ICHRA can be offered by employers of any size and allows employees to purchase individual market coverage, which the employer reimburses up to a set amount. Both direct employer dollars toward individually purchased health coverage.
Why the other options are wrong
- B) These are employer-funded arrangements, not government subsidies; premium tax credits through Covered California are the subsidy mechanism.
- C) They are not health plans at all; they are reimbursement accounts paired with separately purchased individual coverage.
- D) They are funded solely by the employer; employee-funded, portable accounts describe health savings accounts.
Memory hook
QSEHRA and ICHRA: employer dollars reimburse employees' individual premiums.